You are here » Home » Companies » Company Overview » Hindusthan Urban Infrastructure Ltd

Hindusthan Urban Infrastructure Ltd.

BSE: 539984 Sector: Engineering
NSE: N.A. ISIN Code: INE799B01017
BSE 00:00 | 20 Oct 4835.00 -86.05
(-1.75%)
OPEN

5049.00

HIGH

5049.00

LOW

4714.05

NSE 05:30 | 01 Jan Hindusthan Urban Infrastructure Ltd
OPEN 5049.00
PREVIOUS CLOSE 4921.05
VOLUME 48
52-Week high 6140.55
52-Week low 733.00
P/E 168.94
Mkt Cap.(Rs cr) 696
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5049.00
CLOSE 4921.05
VOLUME 48
52-Week high 6140.55
52-Week low 733.00
P/E 168.94
Mkt Cap.(Rs cr) 696
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hindusthan Urban Infrastructure Ltd. (HINDURBANINFRA) - Auditors Report

Company auditors report

TO THE MEMBERS OF HINDUSTHAN URBAN INFRASTRUCTURE LIMITED

I. Report on the Audit of Standalone Financial Statements for the year ended 31stMarch 2020

1. Opinion

A. We have audited the Standalone Financial Statements of Hindusthan UrbanInfrastructure Limited ("the Company") which comprise the Balance Sheet asat March 31 2020 and the Statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and Statement of Cash Flows for the year thenended and notes to financial statements including a summary of the significant accountingpolicies and other explanatory information (hereinafter referred to as "theStandalone Financial Statements").

B. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at March 31 2020 and its Profit othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

2. Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the independence requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone FinancialStatements.

3. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the Standalone Financial Statements of the current period.These matters were addressed in the context of our audit of the Standalone FinancialStatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined that there are no key audit mattersto be communicated in our report.

4. Information Other than the Standalone Financial Statements and Auditor'sReport thereon

A. The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Standalone Financial Statements and our auditor's report thereon.

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

B. In connection with our audit of the financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the Standalone Financial Statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

5. Responsibilities of Management and Those Charged with Governance for theStandalone Financial Statements

A. The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including Indian AccountingStandards (Ind AS) specified under section 133 of company Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.

B. In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are responsible for overseeing the Company's financialreporting process.

6. Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

A. Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

B. As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: i) Identify and assess therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. ii) Obtain an understanding ofinternal financial controls relevant to the audit in order to design audit procedures thatare appropriate in the circumstances. Under section 143(3)(i) of the Act we are alsoresponsible for expressing our opinion on whether the Company has adequate internalfinancial controls system in place and the operating effectiveness of such controls. iii)Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management. iv) Conclude on theappropriateness of management's use of the going concern basis of accounting and based onthe audit evidence obtained whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a goingconcern. If we conclude that a material uncertainty exists we are required to drawattention in our auditor's report to the related disclosures in the Standalone FinancialStatements or if such disclosures are inadequate to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor's report. Howeverfuture events or conditions may cause the Company to cease to continue as a going concern.v) Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

C. We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

D. We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

E. From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

II. 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 in terms of Section 143(11) of the Act we give in "AnnexureA" a statement on the matters specified in paragraph 3 and 4 of the Order to theextent applicable.

2. (A) As required by Section 143(3) of the Act based on our audit we report that: a.We have sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit; b. In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books; c. The Balance Sheet the Statement of Profitand Loss including Other Comprehensive Income Statement of Changes in Equity and theStatement of Cash Flow dealt with by this Report are in agreement with the relevant booksof account; d. In our opinion the aforesaid standalone financial statements comply withthe Ind AS specified under Section 133 of the Act. e. On the basis of the writtenrepresentations received from the directors as on March 31 2020 taken on record by theBoard of Directors none of the directors is disqualified as on March 31 2020 from beingappointed as a director in terms of Section 164 (2) of the Act; f. With respect to theadequacy of the internal financial controls over financial reporting of the Company andthe operating effectiveness of such controls refer to our separate Report in "AnnexureB".

(B) 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) TheCompany has disclosed the impact of pending litigations on its financial position in itsStandalone Financial Statements. Refer note 31 to the standalone financial statements ii)The Company has made provision as required under the applicable law or Ind-AS formaterial foreseeable losses if any on long-term contracts including derivativecontracts. iii) There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

(C) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act: In our opinion and to thebest of our information and according to the explanations given to us the remunerationpaid by the Company to its directors during the year is in accordance with the provisionsof section 197 of the Act.

For K.N. Gutgutia & Co.
Chartered Accountants
(Firm's Registration No. 304153E)
(B.R. GOYAL)
Partner
Place: New Delhi (Membership No.12172)
Date: 29th June 2020 (UDIN : 20012172AAAAOI4193)

ANNEXURE "A" TO THE INDEPNDEDNT AUDITOR'S REPORT

(Referred to in paragraph II point 1 under "Report on Other Legal and RegulatoryRequirements" section of our report to the members of Hindusthan Urban InfrastructureLimited of even date) i) (a) The Company has maintained proper records showing fullparticulars including quantitative 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 inventorieshave been physically verified during the year lying at various project sites by themanagement 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 the Company hasduring the year granted unsecured loan to its subsidiary company covered in the registermaintained under Section 189 of the Act. The terms and conditions of the grant of suchloans are not prejudicial to the company's interest. The borrower has been regular inpaying interest on loan and there is no overdue principal amount at the year end. iv)According to the information and explanation given to us the company has complied withthe provisions of section 185 and 186 of the Act in respect of making Investment grantsof Loans and providing guarantees and securities. v) The Company has not accepted anydeposits from the public during the year and hence paragraph 3(v) of the Order is notapplicable to the Company. vi) Pursuant to the rules made by the central government ofIndia the company is required to maintain cost records as specified under section 148(1)of the act in respect of its products. We have broadly reviewed the same and are ofopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the records with a view todetermine whether they are accurate or complete. vii) (a) According to the recordsexamined by us the Company is generally regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund Employees State InsuranceIncome Tax Goods & Service Tax Duty Of Custom Duty Of Excise Cess and otherstatutory dues wherever applicable.

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Income Tax Duty Of Customs Goods and Service TaxCess and other material statutory dues were in arrears as at 31st March 2020 for a periodof 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) Year to which the amount relates( FY) 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. 488619 1995-96 Hon'ble High Court Allahabad. Remanded to Assistant Commissioner (Assessment) Ghaziabad.
Central Sales Tax Act 1956 & Sales Sales Tax U.P. 64307 1985-86 Assisstant Commissioner
Tax/Vat Act of Various States (Assessment) Ghaziabad.
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax U.P. 925200 2000-01 Hon'ble High Court Allahabad
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax U.P. 70678 1984-85 Tribunal Ghaziabad
Name of the Statute Nature of dues Amount (in Rs) (net of amount paid) Year to which the amount relates( FY) Forum where dispute is pending
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Central Excise Guhawati 1634135 2012-13 Commissioner of Central Excise- (Appeal) Guwahati
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Central Excise Guhawati 2638394 2014-15 Commissioner of Central Excise- (Appeal) Guwahati
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Gwalior 14891201 2015-16 Appeal filed before Commissioner of VAT Gwalior
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Gwalior 1481400 2011-12 Appeal filed before Commissioner of ET Gwalior
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Sales Tax Gwalior 2328746 2016-17 Appeal filed before Commissioner of ET Gwalior
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States GST & Central Excise Khurda 2055175 2014-15 Appeal filed with Commissioner (Appeals) GST & Central Excise against order of Commissioner (Audit)-GST & Central Excise
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States VAT Khurda 286973 2017-18 Appeal filed before STO CT & GST CIRCLE
Central Sales Tax Act 1956 & Sales Central Sale Tax Khurda 7392174 2017-18 Appeal filed before STO CT & GST
Tax/Vat Act of Various States CIRCLE
Central Sales Tax Act 1956 & Sales GST & Central Excise 364182 2016-17 Superintendent of GST & Central
Tax/Vat Act of Various States Khurda Excise
Central Sales Tax Act 1956 & Sales Central Sale Tax Khurda 27443798 2015-16 Appeal filed before STO CT & GST
Tax/Vat Act of Various States CIRCLE
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Central Sale Tax Khurda 29261576 2016-17 Appeal filed before STO CT & GST CIRCLE
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Central Sale Tax Khurda 1920462 2016-17 Assisstant Commissioner of GST & Central Excise
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Central Sale Tax Khurda 183854 2016-17 Assisstant Commissioner of GST & Central Excise
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Central Sale Tax Khurda 1171519 2017-18 Assisstant Commissioner of GST & Central Excise
Central Sales Tax Act 1956 & Sales Tax/Vat Act of Various States Central Sale Tax Khurda 2456487 2016-17 Assisstant Commissioner of GST & Central Excise
Income Tax Department Income Tax 17047710 2013-14( A.Y.) CIT Appeals Kolkata
Income Tax Department Income Tax 1271693 2014-15 (A.Y.) CIT Appeals Kolkata
Income Tax Department Income Tax 585215 2015-16(A.Y.) CIT Appeals Kolkata
Income Tax Department Income Tax 1249380 2016-17( A.Y.) CIT Appeals Kolkata

In respect of Income Tax Demand given above company state that these demand pertainingto wrong calculation of Interest U/s 234B & 234C wrong demand of DDT and ITAT Appealorder effect not given by the Income Tax department. The company had filed appeal as wellas rectification application for the said demand. viii) Based on our audit procedures andaccording to the information given by the management the company has not defaultedrepayment in respect of any loans or borrowings from any financial institution bankgovernment. The company has not issued debentures during the year. ix) In our opinion andaccording to the information and explanations given to us the Company did not raise anymoney by way of any initial public offer or further public offer (including debtinstrument) and the monies raised by way of term loans were applied for the purpose forwhich 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 andinformation and explanations made available and based on the examination of the records ofthe company managerial remuneration which has been paid or provided is in accordance withthe requisite approval mandated vide provisions of Section 197 read with schedule V to theCompanies Act 2013. xii) The Company is not a Nidhi Company and hence 3 (xii) of the Orderis not applicable to the Company. xiii) As per the information and explanations andrecords made available by the management of the company and audit procedure performed forthe related parties transaction entered during the year the company has complied with theprovisions of sec 177 and 188 of the act wherever applicable. As explained as perrecords and details made available to us such related parties transactions have beendisclosed in the note no. 34 of standalone financial statements as required by theapplicable Ind-AS. xiv) According to the records of the company it has not made anypreferential allotment of shares or private placement of shares or fully/partlyconvertible debentures during the year under report. Accordingly paragraph 3 (xiv) of theOrder is not applicable to the Company. xv) According to information and explanation givento us and based on the examination of the records of the company the Company has notentered into any non-cash transaction with Director or person connected with him. Henceparagraph 3 (xv) of the Order is not applicable to the Company. xvi) The Company is notrequired to be registered under section 45-1A of the Reserve Bank of India Act 1934 andhence paragraph 3 (xvi) of the Order is not applicable to the Company.

For K.N. Gutgutia & Co.
Chartered Accountants
(Firm's Registration No. 304153E)
(B.R. GOYAL)
Partner
Place: New Delhi (Membership No.12172)
Date: 29th June 2020 (UDIN : 20012172AAAAOI4193)

ANNEXURE "B" TO THE INDEPNDEDNT AUDITOR'S REPORT

(Referred to in paragraph II point 2 A (f) under "Report on Other Legal andRegulatory Requirements" section of our report to the members of Hindusthan UrbanInfrastructure Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act") Opinion

We have audited the internal financial controls over financial reporting of HindusthanUrban Infrastructure Limited ("the Company") as of March 31 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date. In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Control over Financial Reporting issued by theInstitute of Chartered Accountants of India.

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 (the "Guidance Note").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note and the Standards on Auditing prescribed underSection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 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 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

For K.N. Gutgutia & Co.
Chartered Accountants
(Firm's Registration No. 304153E)
(B.R. GOYAL)
Partner
Place: New Delhi (Membership No.12172)
Date: 29th June 2020 (UDIN : 20012172AAAAOI4193)

.