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Hittco Tools Ltd.

BSE: 531661 Sector: Engineering
NSE: N.A. ISIN Code: INE863C01019
BSE 00:00 | 01 Feb 12.18 0.58
(5.00%)
OPEN

11.69

HIGH

12.18

LOW

11.69

NSE 05:30 | 01 Jan Hittco Tools Ltd
OPEN 11.69
PREVIOUS CLOSE 11.60
VOLUME 9162
52-Week high 28.60
52-Week low 7.51
P/E 7.25
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 11.69
CLOSE 11.60
VOLUME 9162
52-Week high 28.60
52-Week low 7.51
P/E 7.25
Mkt Cap.(Rs cr) 8
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Hittco Tools Ltd. (HITTCOTOOLS) - Auditors Report

Company auditors report

To the Members of HITTCO TOOLS LIMITED

Qualified Opinion:

We have audited the Standalone Financial Statements of HITTCO TOOLS LIMITED ("theCompany") which comprise the Balance Sheet as at 31a March. 2022. theStatement of Profit and Loss (including other comprehensive income) statement of changesin equity and the statement of cash flows for the year then ended and a summary ofsignificant accounting policies and other explanatory' information (hereinafter referredas standalone financial statements)

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified Opinion section of our audit report the aforesaid financial statements give theinformation required by the Companies Act 2013 in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended!"Ind AS") accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March. 2022 and its loss (Includingother comprehensive lncomc).changes in equity and its cash flows for the year ended onthat date.

Basis for Qualified Opinion:

1. Note (4) - The finished goods and work-in progress have been valued at estimatedcost. The estimated Cost has been arrived by deducting certain percentage towards marginfrom the estimated selling price. We are unable to obtain sufficient and appropriate auditevidence about approximation of the estimated cost to the Actual cost as required by theInd AS - 2 "Inventories" from the records maintained by the company.Consequently we are unable to delermine the impact of the same on the financialstatements for the year end 31st March 2022.

2. Balance confirmations have not been received from Trade receivables. Other Financialassets and Other Financial liabilities against balance outstanding as on 3151March 2022. In the absence of such confirmations we are unable to comment on the impactarising out of reconciliation/ adjustments if any on the financial statements for theyear end 31 st March 2022.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act. 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theStandalone Ind AS Financial Statements section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India (ICAI) together with the ethical requirements that are relevant toour audit of the standalone financial statements under the provisions of the CompaniesAct. 2013 and the rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and ICAI's Code of ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our qualified opinion.

Other Information

The Company's management Board of Directors is responsible for the other information.The other information comprises the information included in the Management Discussion andAnalysis Board's Report including Annexurcs to Board's Report Business ResponsibilityReport Corporate Governance and Shareholder's Information but does not include thefinancial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and. in doing so. consider whether such other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If. based on the work we haveperformed we conclude that there is a material misstatement of this other information wearc required to report that fact. We have nothing to report in this regard.

Responsibility of Management and Board of Directors for the Standalone FinancialStatements

The Company's Management and Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thestate of affairs profit and loss and other comprehensive income changes in equity andcash flows of the Company in accordance with the accounting principles generally acceptedin India including the Indian Accounting Standards (Ind AS) specified under section 133of the Act. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that w ere operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement w hether due to fraud or error.

In preparing the financial statements the Board of Directors 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 unlessthe Board of Directors cither intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

That Board of Directors are also responsible for overseeing the company's financialreporting process.

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

Our objectives arc 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.

As part of an audit in accordance with the SAs we exercise professional judgement andmaintain Professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements w hether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act. 2013 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system with reference to standalonefinancial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessol accounting estimates and related disclosures by the management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and. based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions arc based on the audit evidence obtained up to the date ofauditor's report. However future events or conditions may cause the company to cease tocontinue as going concern .

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and signi ficant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

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.

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 arc therefore the key audit matters. W'e 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.

Report on Other Legal and Regulatory Requirements

1. I. As required by the Companies (Auditor's Report) Order. 2020 ("the Order)issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of the Act. we report that:

i) 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:

ii) 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.

iii) The Standalone Balance Sheet the Standalone Statement of Profit and Loss(including other comprehensive income) the standalone statement of changes in equity andthe standalone statement of Cash Flow Statement dealt with by this Report are in agreementwith the books of account.

iv) In our opinion the aforesaid Standalone financial statements comply with theIndian Accounting Standards (lnd AS) specified under Section 133 of the Act. read withRule 7 of the Companies (Accounts) Rules. 2014.

v) On the basis of the written representations received from the directors as on 31stMarch. 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March. 2021 from being appointed as a director in terms of Section164 (2) of the Act.

vi) With respect to the adequacy of the Internal Financial Control with reference toStandalone Financial Statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

vii) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule II 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:

(a) The Company does not have any pending litigations which would impact its standalonefinancial statements.

(b) The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

(c) There were no amounts which were required to be transferred to the Investorliducation and Protection Fund by the Company.

Annexure "A" to the Independent Auditor's Report

The Annexure referred to in our Independent Auditor's Report to the members of theCompany on the Standalone financial statements for the year ended 31a March.2022

In terms of the information and explanation sought by us and given by the Company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that:-

I.

(a) (i) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property plant and equipment.

(ii) The Company has maintained proper records showing full particulars of Intangibleassets.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company doesn't have any regular programmeof physical verification of its Property plant and equipment by which all Property plantand equipment are not verified in a phased manner over a period of three years.

(c) We have examined the original title deed and xerox copies of title deeds in case ofmortgaged properties. Based on our audit procedures and according to the information andexplanations given to us we report that all title deeds of immovable proprieties are heldin the name of the Company.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not revalued its propertyplant and equipment (including Right-of-use assets) or Intangible assets or both duringthe year.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act. 1988 and rules made thereunder

2. (i) The inventory has been physically verified by the management during the year. Inour opinion the frequency of such verification is reasonable and procedures and coverageas followed by management were appropriate. No discrepancies were noticed on verificationbetween the physical stocks and the book records that were 10% or more in the aggregatefor each class of inventory.

(ii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has been sanctioned working capitallimits of fifty-five lakhs rupees in aggregate from banks on the basis of security ofpromotors personal property.

3. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has made any investmentsprovided guarantee or security or granted any advances in the nature of loans secured orunsecured to companies firms limited liability partnerships or any other parties duringthe year. The Company has granted advance to one company and LLP during the year detailsof the loan is stated in sub-clause (a) below. The Company has not granted any loanssecured or unsecured to firms or any other parties during the year.

Based on the audit procedures carried on by us and as per the information andexplanations given to us. the Company has granted advance to a party as below

Particulars Amount advanced during the year Amount Outstanding at the BS date
1EM International Pvt Ltd 11.66.575/- 11.66.575/-
HTC Properties LLP 3.66.418/- 3.66.418/-

(b) According to the information and explanations given to us and based on the auditprocedures conducted by us. we are of the opinion that the terms and conditions of theloans given are. prima facie not prejudicial to the interest of the Company

4. According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not given any loans or provided any guaranteeor security as specified under Section 185 of the Companies Act 2013 and the Company hasnot provided any guarantee or security as specified under Section 186 of the CompaniesAct. 2013. Further the Company has complied with the provisions of Section 186 of theCompanies Act. 2013 in relation to loans given and investments made.

5. The Company has not accepted any deposits or amounts which arc deemed to be depositsfrom the public. Accordingly clause 3(v) of the Order is not applicable

6. According to the information and explanations given to us. the Central Governmenthas not prescribed the maintenance of cost records under Section 148(1) of the CompaniesAct. 2013 for the products manufactured by it (and/ or services provided by it).Accordingly clause 3(vi) of the Order is not applicable

7. (a) The Company does not have liability in respect of Sales tax Service tax. Dutyof excise and Value added tax during the year since effective 1 July 2017 these statutorydues has been subsumed into GST. According to the information and explanations given to usand on the basis of our examination

of the records of the Company amounts deducted/ accrued in the books of account inrespect of undisputed statutory dues including Goods and Services Tax ('GST') Providentfund. Employees' State Insurance. Income-tax. Duty of Customs. Cess and other materialstatutory dues have generally been regularly deposited with the appropriate authorities.According to the information and explanations given to us no undisputed amounts payablein respect of GST Provident fund. Employees' State Insurance. Income-tax. Duty ofCustoms. Cess and other material statutory dues were in arrears as at 31 March 2022 for aperiod of more than six months from the date they became payable.

(b) According to the information and explanations given to us. there are no dues ofGST Provident fund. Employees' State Insurance. Income-tax. Sales tax. Sendee tax. Dutyof Customs. Value added tax. Cess or other statutory dues which have not been deposited bythe Company on account of disputes except for the following:

SNo Name of the Act Assessment Year Amount
1 Income Tax Act 2018-19 62.200/-
2 Traces 2022-23 96.242/-
3 Traces 2021-22 579/-
4 Traces 2020-21 238/-
5 Traces Prior Years 8.98.101/-

8. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not surrendered or disclosedany transactions previously unrecorded as income in the books of account in the taxassessments under the Income-tax Act. 1961 as income during the year.

9. (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has loans or borrowings fromany lender during the year. But the company has not defaulted in repayments of itsprincipal and interest during the year.

(b) According to the information and explanations given to us and on the basis ol ourexamination ol the records of the Company the Company has not been declared a wilfuldefaulter by any bank or financial institution or government or government authority.

? According to the information and explanations given to us by the management theCompany has obtained any Vehicles loans during the year.

(d) According to the information and explanations given to us and on an overallexamination ot the balance sheet of the Company we report that no funds have been raisedon short-term basis and utilized for long term purpose by the Company. Accordingly clause3(ix)(d) ot the Order is not .applicable.

(e ) According to the information and explanations given to us and on an overallexamination of the financial statements of the Company we report that the Company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries as defined under the Companies Act. 2013. Accordingly clause 3(ix)(e) of theOrder is not applicable.

(f) According to the information and explanations given to us and procedures performedby us. we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries as defined under the Companies Act. 2013. Accordinglyclause 3(ix)(l) of the Order is not applicable.

10. (a) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments). Accordingly clause 3(x)(a) of the Order is notapplicable.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause 3(x)(b) of the Order is not applicable.

11. (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us considering the principles of materialityoutlined in Standards on Auditing we report that no fraud by the Company or on theCompany has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Companies Act 2013 has been filed by the auditorsin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.

€> We have taken into consideration the whistle blower complaints received bythe Company during the year while determining the nature timing and extent of our auditprocedures.

12. According to the information and explanations given to us. the Company is not aNidhi Company. Accordingly clause 3(xii) of the Order is not applicable.

13. In our opinion and according to the information and explanations given to us. thetransactions with related parties are in compliance with Sections 177 and 188 of theCompanies Act. 2013. where applicable and the details of the related party transactionshave been disclosed in the standalone financial statements as required by the applicableIndian Accounting Standards.

14. (a) Based on information and explanations provided to us and our audit proceduresin our opinion the Company has an internal audit system commensurate with the size andnature of its business.

15. In our opinion and according to the information and explanations given to us. theCompany has not entered into any non-cash transactions with its directors or personsconnected to its directors and hence provisions of Section 192 of the Companies Act 2013are not applicable to the Company.

16. (a) The Company is not required to be registered under Section 45-1A of the ReserveBank of India Act. 1934. Accordingly clause 3(xvi)(a) of the Order is not applicable.

(b) The Company is not required to be registered under Section 45-1A of the ReserveBank ot India Act 1934. Accordingly clause 3(xvi)(b) of the Order is not applicable.

( c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable.

(d) According to the information and explanations provided to us during the course ofaudit the Group does not have any CIC. Accordingly the requirements of clause 3(xvi)(d)are not applicable.

17. The Company has not incurred cash losses in the current and in the immediatelypreceding financial year.

18. There has been no resignation of the statutory' auditors during the year.Accordingly clause 3(xviii) of the Order is not applicable.

19. According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatthe Company is not capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date.We. however stale that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will gel dischargedby the Company as and when they fall due.

20. In our opinion and according to the information and explanations given to us. thereis no unspent amount under sub-section (5) of Section 135 of the Companies Act. 2013pursuant to any project. Accordingiv. clauses 3(xxl(a) and of the Order are notapplicable.

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

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

We have audited the internal financial controls over financial reporting of HITTCOTOOLS LIMITED ("the Company") as on 3151 March 2022. in conjunctionwith our audit of the Standalone financial statements of the company for the year ended onthat date.

.Management's and Board of Director's Responsibility for Internal Financial Controls

The Company's Management and the board of Directors are responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal financial control overfinancial reporting issued by the Institute of Chartered Accountants of India (1CA1).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 the 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.

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 accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants oflndiaand the Standards on Auditing prescribed under section 143(10) of the Companies Act2013. to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all maierial 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 included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use. or disposition of the company's assets that could have amaterial 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 olcontrols 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 ot compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us. the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 3151 March 2022. based on theinternal control over financial reporting criteria established by the company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For BOTHRA NIRMAL ASSOCIATES
Chartered Accountant
F.R.N 322103E
7/1B GRANT LANE Sd/-
SHYAM KUNJ Nirmal Kumar Bothra
1st FLOOR R.N. 15 Partner
KOLKATA - 700012 Membership No. 052248
Date: 28/05/2022 I'DIN: 22052248AJVODII4826

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