To the Members of HITTCO TOOLS LIMITED
We have audited the Standalone Ind AS Financial Statements of HITTCO TOOLS LIMITED("the Company") which comprise the Balance Sheet as at March 31 2019 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 referred asstandalone 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 Basisfor Qualified Opinion section of our audit report the aforesaid financialstatements give the information required by the Companies Act 2013 in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015as amended(Ind AS) accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31st 2019 and itsprofit (Including other comprehensive Income)changes in equity and its cash flows forthe year ended on that date.
Basis for Qualified Opinion:
The finished goods and work-in progress have been valued at estimated cost. Theestimated Cost has been arrived by deducting some percentage towards margin from theestimated selling price. We are unable to obtain sufficient and appropriate audit evidenceabout approximation of the estimated cost to the Actual cost as required by the lnd AS - 2"Inventories" from the records maintained by the company. Consequently we areunable to determine the impact of the same on the financial statements for the year end31st March 2019.
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 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 to ouraudit of the standalone financial statements under the provisions of the CompaniesAct2013 and the rules made there under 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.
Key Audit Matters
Except for the matter described in the Basis for Qualified Opinion section we havedetermined that there are no other key audit matters to communicate in our report.
Management's Responsibility for the standalone IND AS Financial Statements
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 IND AS financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the IND AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing 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 standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether 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 either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
Those 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 are to obtain reasonable assurance about whether the standalone Ind ASFinancial 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 assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with the SAs will always detect material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in aggregate they could reasonably be expected to influence the economicdecisions of the user taken on the basis of the these standalone IND AS financialstatements.
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 whether 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 audit 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 financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the act we are also responsible for expressing our opinion on whether thecompany has adequate financial controls system in place and the operating effectiveness ofsuch controls
Evaluate the appropriateness of accounting policies used and the reasonablenessof 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 are based on the audit evidence obtained upto 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 significant 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 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.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofSection 143 of the Act we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section 143 (3) of the Act we report that:
i) We have sought and except for the matters described in the Basis for Qualifiedopinion paragraph above obtained all the information and explanations which to thebest of our knowledge and belief were necessary for the purpose of our audit;
ii) Except for the possible effects of the matters described in the Basis forQualified opinion paragraph above in our opinion proper books of accounts asrequired by law have been kept by the Company so far as appears from our examination ofthose books;
iii) The balance sheet the statement of profit and loss including Other Comprehensiveincome statement of changes in equity and the statement of cash flows dealt with by thisreport are in agreement with the books of account;
iv) Except for the possible effects of the matters described in the Basis forQualified opinion paragraph the aforesaid standalone financial statements complywith the Indian Accounting Standards specified under Section 133 of the CompaniesAct2013.
v) The matters described in the Basis for Qualified opinion paragraphabove in our opinion may not have an adverse effect on the functioning of the company.
vi) On the basis of written representations received from the directors of the companyas on 31st March 2019 none of the directors is disqualified to be appointed asdirector in terms of section 164(2) of the act.
vii) The qualifications relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified opinion paragraphabove.
viii) With respect to the adequacy of the internal financial controls over financialreporting of the company and the operating effectiveness of such controls refer to ourseparate Annexure B'. our report expresses a Qualified opinion on the adequacy andoperating effectiveness of the company's financial controls over financial reporting
ix) 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:
a. The Company has disclosed the impact of pending litigations on its financialposition in its financial 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 InvestorEducation and Protection Fund by the company.
| ||For Mishra and co. |
| ||Chartered Accountants |
| ||FRN No. 012355S |
| ||CA Nilamadhab Mishra |
| ||Proprietor |
|Place: Bangalore ||Membership No.223157 |
|Date:29th May2019. || |