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Hindusthan Urban Infrastructure Ltd.

BSE: 539984 Sector: Engineering
NSE: N.A. ISIN Code: INE799B01017
BSE 12:09 | 16 Sep 744.85 34.85
(4.91%)
OPEN

690.00

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744.85

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690.00

NSE 05:30 | 01 Jan Hindusthan Urban Infrastructure Ltd
OPEN 690.00
PREVIOUS CLOSE 710.00
VOLUME 46
52-Week high 979.00
52-Week low 505.00
P/E 16.42
Mkt Cap.(Rs cr) 107
Buy Price 690.00
Buy Qty 9.00
Sell Price 744.80
Sell Qty 5.00
OPEN 690.00
CLOSE 710.00
VOLUME 46
52-Week high 979.00
52-Week low 505.00
P/E 16.42
Mkt Cap.(Rs cr) 107
Buy Price 690.00
Buy Qty 9.00
Sell Price 744.80
Sell Qty 5.00

Hindusthan Urban Infrastructure Ltd. (HINDURBANINFRA) - Auditors Report

Company auditors report

TO THE MEMBERS OF HINDUSTHAN URBAN INFRASTRUCTURE LIMITED REPORT ON THE STANDALONE INDAS FINANCIAL STATEMENTS

1. We have audited the accompanying Standalone financial statements of Hindusthan UrbanInfrastructure IndAS Limited ("the Company") which comprises the Balance Sheetas at 31st March 2018 and the Statement of Profit and Loss(including Other ComprehensiveIncome) the Cash Flow Statement & Changes in Equity for the year then ended and asummary of the significant accounting policies and other explanatory information(hereinafter referred to as "standalone Ind AS financial statements.")

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 preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including of the Comprehensive Income cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provision 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.

Auditors' Responsibility

3. Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting our audit we have taken into account the provisions of the Act theAccounting and Auditing Standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under Section143 (10) of the Companies Act 2013.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the standalone Ind AS financialstatements are free from material misstatements.

4 An audit involves performing procedures to obtain audit evidence about the amountsand the 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 controlsrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

5. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

6. 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 Ind AS of thefinancial position of the Company as at 31st March 2018 and its financial performanceincluding other comprehensive income its cash flows and the changes in equity for theyear ended on that date.

Other Matter

7. We did not audit the financial statements of Guwahati Unit of the Company includedin the standalone Ind AS financial statements whose financial statement reflect totalassets of Rs. 9503.63 Lakhs as at 31st March 2018 and total revenues of Rs. 10141.58Lakhs for the year ended 31st March 2018 as considered in the standalone Ind AS financialstatements. These financial statements have been audited by the other auditor whosereport has been furnished to us by the management and our opinion on the standaloneStatement in so far as it relates to the amounts and disclosure included in respect ofGuwahati Unit is based solely on the report of the other auditor.

Report on Other Legal and Regulatory Requirement

8. As required by the Companies (Auditor's Report) Order 2016 (‘Order') issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Actwe enclose in the Annexure ‘A' a statement on the matters specified in paragraphs 3and 4 of the said Order.

9. As required by Section143 (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 purpose of our audit;

b. in our opinion proper Books of Accounts as required by the law have been kept by theCompany so far as appears from our examination of those books;

c. the Balance Sheet the Statement of Profitand Loss including Other ComprehensiveIncome the Statement of Cash Flow and the Statement of changes in Equity dealt with bythis report are in agreement with the books of account;

d. In our opinion the aforesaid standalone Ind AS Financial Statements comply with theAccounting Standards prescribed under Section 133 of the Act read with relevant rulesissued thereunder.

e. on the basis of written representations received from the directors as on 31st March2018 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2018 from being appointed as director in terms of section 164(2) of theCompanies Act 2013 ;

f. With respect to the adequacy of the Internal Financial Controls over the financialreporting of the Company and operating effectiveness of such controls refer to ourseparate Report in "Annexure B"; and

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule11 of the Companies (Audit and Auditors)Rules2014 as amended in ouropinion and to the best of our information and according to the explanations given to us:

I. The Company has disclosed the impact of pending litigation on its financial positionin its standalone Ind AS financial statement- Refer Note. 31 to the standalone Ind ASfinancial statement;

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

III. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the company.

FOR K.N. GUTGUTIA & COMPANY
CHARTERED ACCOUNTANTS
FRN 304153E
(B.R. GOYAL)
PLACE: NEW DELHI PARTNER
DATE: 03rd MAY 2018 M.NO. 12172

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

The Annexure "A" referred to in paragraph 7 of our report of even date to themembers of Hindusthan Urban Infrastructure Limited on the Standalone Ind AS FinancialStatements for the year ended 31st March 2018.

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

(b) As explained to us physical verification of fixed assets has been carried out bythe company and no material discrepancies were noticed on such verification. In ouropinion this periodicity and manner of physical verification is reasonable having regardto the size of the company and the nature of its assets..

(c) According to the information and explanations given to us title deeds of immovableproperties of the company are held in the name of the Company.

ii) (a) The inventories have been physically verified during the year lying at variousproject sites by the management at reasonable intervals.

(b) In our opinion no material discrepancies were noticed on physical verification ofstocks.

iii) According to the information and explanations given to us during the year theCompany has during the year granted unsecured loan to its wholly owned subsidiarycompany covered in the register maintained under sec 189 of the companies act 2013. Theterms and conditions of the grant of such loans are not prejudicial to the company'sinterest. The borrower has been regular in paying interest on loan and there is no overdueprincipal amount at the year end.

iv) According to the information and explanation given to us the company has compliedwith the provisions of section 185 and 186 of the Companies Act 2013 in respect of makingInvestment grants of Loans and providing guarantees.

v) The Company has not accepted any deposits during the year and hence paragraph 3(v)of the Order is not applicable to the Company.

vi) Pursuant to the rules made by the central government of India the company isrequired to maintain cost records as specified under section 148(1) of the act in respectof its products. We have broadly reviewed the same and are of opinion that prima faciethe prescribed accounts and records have been made and maintained. We have not howevermade a detailed examination of the records with a view to determine whether they areaccurate or complete.

vii) (a) According to the records examined by us the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund Employees State Insurance Income Tax Sales Tax Service Tax Goods & ServiceTax Duty Of Custom Duty Of Excise Value Added Tax Cess and other statutory dueswherever applicable.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Sales Tax Value Added Tax Duty OfCustoms Service Tax GST Cess and other material statutory dues were in arrears as at31st March 2018 for a period of more than six months from the date they became payable.

(b) According to the records and information and explanations given to us and therecords of the company examined by us dues of Income Tax Sales Tax Service Tax Goods& Service Tax Duty Of Customs Duty of Excise Value Added Tax Cess and otherstatutory dues which have not been deposited on account of disputes are as follows:

Name of the Statute Nature of dues Amount (in Rs.) (net of amount paid) Period to which the amount relates Forum where dispute is pending
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Haryana 1720197 2004-05 Sales Tax Tribunal Chandigarh
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax U.P. 552926 1995-96 Assistant Commissioner (Assessment) Ghaziabad
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax U.P. 925200 2001-02 Hon'ble High Court Allahabad
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax U.P. 70678 1985-86 Tribunal Ghaziabad
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Gwalior 2895512 2013-14 Commissioner of Vat(Appeal) Gwalior
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Gwalior 7639214 2014-15 Commissioner of VAT (Appeal) Gwalior
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Bhopal 603441 2013-14 MP Commercial Tax Appeal Board Bhopal
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Bhopal 2857782 2011-12 Addl. Commissioner of Tax Bhopal
Central Sales Tax Act 1956 & Sales Tax Bhopal 1783192 2012-13 Addl. Commissioner of
Sales Tax/Vat Act of Various States Tax Bhopal
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Bhopal 434478 2014-15 MP Commercial tax Appeal Board Bhopal
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Bhopal 1515021 2015-16 MP Commercial tax Appeal Board Bhopal
Municipal Corporation Faridabad Development Charges at Faridabad Work Land 13712183 2013-14 Hon'ble High Court Chandigarh
Central Excise No Proper Endorsement On Bill of Entry 31869030 Feb 2009-Aug 2009 Commissioner of custom/excise and service tax Indore
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales tax/ Gwalior 22337420 2015-16 Commissioner of Vat (Appeals) Gwalior
Central Excise Central Excise Khurda 2221811 2015-16 Commissioner (Audit) – GST & Central Excise
Central Excise Central Excise Bhopal 1860764 2009-10 DY. Commissioner of custom/excise and service tax Bhopal
Central Excise No Proper Endorsement On Bill of Entry 11969731 2009-10 Commissioner of custom/excise and service tax Indore
Central Excise Evaded payment of Central Excise Duty and cess against Duty on Vat remission 6102510 2012-13 Commissioner (Appeals) custom & central excise Guwahati
Central Excise Evaded payment of Central Excise Duty and cess against Duty on Vat remission 2562394 2014-15 Commissioner (Appeals) custom & central excise Guwahati
Income Tax Department Income Tax 1840570 2005-06 ITAT New Delhi
Income Tax Department Income Tax 148860 2007-08 CIT Appeals Kolkata
Income Tax Department Income Tax 3170477 2010-11 CIT Appeals Kolkata
Income Tax Department Income Tax 7378430 2011-12 CIT Appeals Kolkata
Income Tax Department Income Tax 833127 2013-14 CIT Appeals Kolkata
Income Tax Department Income Tax 426998 2014-15 CIT Appeals Kolkata

Apart from these dues the company has received demand of Rs. 66927117/- from incometax department related to assessment year 13-14 & 14-15 however the credit of advanceincome tax of Rs. 46600000/- has not been adjusted against the liability at the time ofassessment but the same is reflectingin records of income tax department ( As perstatement of 26AS) and balance demand is due to interest charged on the above. The companyhas filed rectification for the said demand.

viii) Based on our audit procedures and according to the information given by themanagement the company has not defaulted repayment in respect of any loans or borrowingsfrom any financial institution bank government. The company did not have any outstandingdebentures during the year.

ix) In our opinion and according to the information and explanations given to us theCompany did not raise any money by way of any initial public offer or further public offer(including debt instrument) and the monies raised by way of term loans were applied forthe purpose for which the loans were obtained.

x) Based upon the audit procedures performed and to the best of our knowledge andaccording to the information and explanations given to us by the management we reportthat no fraud by the Company or any fraud on the company by its officer or employees hasbeen noticed or reported during the course of our audit

xi) On the basis of records and information and explanations made available and basedon the examination of the records of the company managerial remuneration which has beenpaid or provided is in accordance with the provisions of Section 197 read with schedule Vto the Companies Act 2013.

xii) The Company is not a Nidhi Company and hence c 3 (xii) of the Order is notapplicable to the Company.

xiii) As per the information and explanations and records made available by themanagement of the company and audit procedure performed for the related partiestransaction entered during the year the company has complied with the provisions of sec177 and 188 of the act wherever applicable. As explained as per records and details madeavailable to us such related parties transactions have been disclosed in the note no. 34of standalone financial statements as required by the applicable accounting standards.

xiv) According to the records of the company it has not made any preferentialallotment of shares or private placement of shares or fully/partly convertible debenturesduring the year under report. Accordingly paragraph 3 (xiv) of the Order is not applicableto the Company.

xv) According to information and explanation given to us and based on the examinationof the records of the company the Company has not entered into any non-cash transactionwith Director or person connected with him. Hence paragraph 3 (xv) of the Order is notapplicable to the Company.

xvi) The Company is not required to be registered under section 45-1A of the ReserveBank of India Act 1934 and hence paragraph 3 (xvi) of the Order is not applicable to theCompany.

FOR K.N. GUTGUTIA & COMPANY
CHARTERED ACCOUNTANTS
FRN 304153E
(B.R. GOYAL)
PLACE: NEW DELHI PARTNER
DATE: 03rd MAY 2018 M.NO. 12172

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF HINDUSTHAN URBAN INFRASTRUCTURE LIMITED)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of HindusthanUrban Infrastructure Limited ("the Company") as at 31st March 2018 inconjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.

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 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 company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' 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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143 (10)of the Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial

Controls and both issued by the Institute of Chartered Accountants of India. 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 judgement including the assessment of the risks ofmaterial misstatement of the financial whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover 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 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 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 control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and operating such internal financialcontrols over financial effectively as at March 31st 2018 based on "the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India"

FOR K.N. GUTGUTIA & COMPANY
CHARTERED ACCOUNTANTS
FRN 304153E
(B.R. GOYAL)
PLACE: NEW DELHI PARTNER
DATE: 03rd MAY 2018 M.NO. 12172