You are here » Home » Companies » Company Overview » Hittco Tools Ltd

Hittco Tools Ltd.

BSE: 531661 Sector: Engineering
NSE: N.A. ISIN Code: INE863C01019
BSE 00:00 | 12 Sep 5.12 0
(0.00%)
OPEN

5.12

HIGH

5.12

LOW

5.12

NSE 05:30 | 01 Jan Hittco Tools Ltd
OPEN 5.12
PREVIOUS CLOSE 5.12
VOLUME 50
52-Week high 8.77
52-Week low 2.85
P/E 26.95
Mkt Cap.(Rs cr) 3
Buy Price 5.12
Buy Qty 150.00
Sell Price 4.65
Sell Qty 50.00
OPEN 5.12
CLOSE 5.12
VOLUME 50
52-Week high 8.77
52-Week low 2.85
P/E 26.95
Mkt Cap.(Rs cr) 3
Buy Price 5.12
Buy Qty 150.00
Sell Price 4.65
Sell Qty 50.00

Hittco Tools Ltd. (HITTCOTOOLS) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT To the Members of HITTCO TOOLS LIMITED

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying Standalone Ind AS Financial Statements of HITTCOTOOLS LIMITED ("the Company") which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss (including other comprehensive income)statement of changes in equity and the statement of cash flows for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the standalone Financial Statements

The Company's Management and Board of Directors are responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these Standalone Ind AS Financial Statements that give a true and fair viewof the financial position financial performance including other comprehensive incomecash flows and changes in equity of the Company in accordance with the Indian Accountingstandards (Ind AS) prescribed under section 133 of the Act read with the Companies(IndianAccounting standards) Rules2015as amended and other accounting principles generallyaccepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance 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 the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Ind AS FinancialStatements based on 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 thereunder.

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing issued by the Institute of Chartered Accountants of India asspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the standalone Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our qualified audit opinion on the standalone Ind AS Financial Statements.

Basis for Qualified Opinion

1. The finished goods and work-in progress have been valued at estimated cost.The estimated cost has been arrived by deducting adhoc percentage towards margin from theselling price. We are unable to obtain sufficient and appropriate audit evidence aboutapproximation to the actual cost as required by the Ind AS — 2"Inventories" from the records maintained by the company. Consequently we areunable to determine the deviation on the financial statements for the year end 31stMarch 2018.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matters described in the Basisfor Qualified Opinion paragraph the aforesaid standalone Ind AS financialstatements give the information required by the Act in the manner so required and gives atrue and fair view in conformity with the accounting principles generally accepted inIndia

i. In the case of the Balance Sheet of the state of affairs of the company as at 31stMarch 2018;

ii. In the case of the statement of profit or loss (including other comprehensiveincome) of the loss for the year

ended on that date;

iii. In the case of the statement of cash flows of the cash flows for the year endedon that date

iv. In the case of the statement of changes in equity the changes in equity for theyear ended on that date

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of subsection (11) of Section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required by Section 143 (3) of the Act based on our audit 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 matter described in the "Basis forQualified opinion" paragraph above in our opinion proper books of account 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 flow dealt with by thisreport are in agreement with the books of account;

iv) Except for the possible effects of the matter described in the "Basis forQualified opinion" paragraph in our opinion the aforesaid Standalone financialstatements comply with the Indian Accounting standards prescribed under section 133 of theAct.

v) The matter described in the "Basis for qualified opinion" paragraph abovein our opinion will not have any adverse effect on the functioning of the company.

vi) On the basis of written representations received from the directors as on March 312018 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2018 from being appointed as a director in terms of Section 164(2) of theAct;

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 report in Annexure ‘B’. our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the company’s financial controls overfinancial 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

a. the Company has disclosed the pending litigations on its financial positions in itsstandalone Ind As financial statements in note No.30.2. (i)

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 & Co.
Chartered Accountants
FRN:012355S
CA Nilamadhab Mishra
Place: Bengaluru Proprietor
Date:30/05/2018 Membership No.223157

Annexure A referred to in paragraph 1 under the heading " Report on Other Legaland Regulatory Requirements " of our report of even date

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

(b) All fixed assets have been physically verified by the management at reasonableintervals. No material discrepancies were noticed on such verification. All the titledeeds of immovable properties are held in the name of the Company.

ii. (a) The management has conducted physical verification of inventory at reasonableintervals during the year.

(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.

iii. (a) The Company has not granted secured/unsecured loan to parties covered in theregister maintained under section 189 of the Companies Act 2013 during the financial year2017-18.

iv. In our opinion and according to the information and explanation provided to us theprovisions of section 185 and 186 of The Companies Act 2013 in respect of grant of loansmaking investments and providing guarantees and securities as applicable have beencomplied with.

v. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public during the year and therefore theprovisions of the clause 3(v) of the order is not applicable to the company.

vi. The Central Government has not prescribed maintenance of cost of records by theCompany under section 148(1) of the Companies Act 2013 for any of the products. Hencereporting under clause 3(vi) of the order is not applicable to the company.

vii. According to the information and explanations given to us in respect of statutorydues

(a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-tax goods andservice tax sales-tax excise duty wealth-tax service tax customs duty cess and othermaterial statutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax goods andservice tax wealth-tax service tax sales-tax customs duty excise duty value addedtax cess and other material statutory dues were outstanding at the year end for aperiod of more than six months from the date they became payable.

(c) According to the records of the Company there are no dues outstanding ofincome-tax goods and service tax sales-tax wealth-tax service tax customs dutyexcise duty value added tax and cess on account of any dispute.

viii. Based on our audit procedures and as per the information and explanations givenby the management we are of the opinion that the Company has not defaulted in repaymentof dues to a financial institution bank or debenture holders. The Company has notborrowed any funds from the government.

ix. Based on information and explanations given to us by the management term loanswere applied for the purpose for which the loans were obtained. There was no money raisedby way of initial public offer or further public offer (including debt instruments) duringthe financial year 2017-18.

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and as per the information and explanations given bythe management we report that no fraud by the Company and no material fraud on theCompany by its officers or employees has been noticed or reported during the year.

xi. According to the information and explanation provided to us and based on ourexamination of the records of the company the company has paid/provided managerialremuneration in accordance with requisite approval mandated by the provisions of section197 read with schedule V of the Act

xii. In our opinion and according to explanation provide to us the Company is not aNidhi Company. Accordingly paragraph 3(xii) of the order is not applicable to the company.

xiii. According to the information and explanation provided to us for all transactionswith the related parties and the details of related parties and the details of relatedparty transactions are in compliance with sections 177 & 188 of the Companies Act2013 wherever applicable for all transactions with the related parties and the details ofsuch related party transactions have been disclosed in the financial statements asrequired by the applicable Accounting Standards.

xiv. The Company has not made any preferential allotment/ private placement of sharesor fully or partly convertible debentures during the financial year 2017-18. Thereforethe provisions of clause 3(xiv) of the order is not applicable.

xv. According to the information and explanation provided to us the company has notentered into any non-cash transaction with its Directors or persons connected to itsdirectors and hence provisions of section 192 of the Companies Act 2013 are notapplicable to the Company.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

c safeguarding 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 of Indiaand 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 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 judgment 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 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.

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 financialreportin g 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.

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 31st March2018based 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 Mishra & Co.
Chartered Accountants
FRN:012355S
CA Nilamadhab Mishra
Place: Bengaluru Proprietor
Date: 30/05/2018 Membership No.223157

ANNEXURE "B" TO THE INDEPENDENT AUDITORS’ REPORT

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 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 31st March 2018 inconjunction with our audit of the Standalone financial statements of the company for theyear 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 control over financial reportingissued by the Institute of Chartered Accountants of India(ICAI). 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 the Company's policies the safeguarding of its assetsthe prevention 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 accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand 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 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 judgment 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 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 of unauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements. Limitations of Internal Financial Controlsover 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.

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 operati ng effectively as at 31st March2018based 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 Mishra & Co.
Chartered Accountants
FRN:012355S
CA Nilamadhab Mishra
Place: Bengaluru Proprietor
Date: 30/05/2018 Membership No.223157