Hind Rectifiers Ltd


BSE: 504036 | NSE: HIRECT | ISIN: INE835D01023 
Market Cap: [Rs.Cr.] 67 | Face Value: [Rs.] 2
Industry: Electronics - Components

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Auditor's Report

INDEPENDENT AUDITOR

To the Members of Hind Rectifiers Limited,

Report on the Financial Statements

We have audited the accompanying financial statements of Hind Rectifiers Limited("the Company"), which comprise the Balance Sheet as at March 31, 2014, and theStatement of Profit and Loss and Cash Flow Statement for the year then ended, and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position, financial performance and cash flows of theCompany in accordance with the Accounting Standards notified under the Companies Act, 1956('the Act') read with General Circular 15/2013 dated 13th September, 2013, issued by theMinistry of Corporate Affairs, in respect of section 133 of the Companies Act, 2013. Thisresponsibility includes the design, implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing and otherapplicable authoritative pronouncements issued by the Institute of Chartered Accountantsof India. Those Standards require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether the financial statementsare free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by themanagement, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us, the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March31, 2014;

b) In the case of the Statement of Profit and Loss, of the loss for the year ended onthat date; and

c) In the case of the Cash Flow Statement, of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2003, as amended by 'theCompanies (Auditor's Report) (Amendment) Order, 2004', issued by the Central Government ofIndia in terms of sub-section (4A) of section 227 of the Act, (hereinafter referred to asthe 'Order') and on the basis of checks of the books and records of the Company as weconsidered appropriate and according to the information and explanations given to us, wegive in the Annexure a statement on the matters specified in paragraphs 4 and 5 of theOrder.

2. As required by section 227(3) of the Act, we report that:

a) We have obtained all the information and explanations, which to the best of ourknowledge and belief, were necessary for the purpose of our audit;

b) In our opinion, proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books and proper returns adequatefor the purposes of our audit have been received from branches not visited by us;

c) The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account and with the returns receivedfrom branches not visited by us;

d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash FlowStatement dealt with by this report, comply with the Accounting Standards notified underthe Act read with the General Circular number 15/2013 dated September 13,2013 of theMinistry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

e) On the basis of written representations received from the Directors as on March 31,2014, and taken on record by the Board of Directors, none of the Directors is disqualifiedas on March 31, 2014, from being appointed as a Director in terms of clause (g) ofsub-section (1) of section 274 of the Act.

For and on behalf of
KHANDWALA & SHAH,
Chartered Accountants,
Firm Reg. No.105069W
(UDAY J. SHAH)
Place: Mumbai Partner
Dated: 28th May, 2014 Membership No.033038

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under "Report on Other Legal and RegulatoryRequirement" section of our report of even date.)

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

(b) As informed the fixed assets have been physically verified by the management atreasonable intervals; and discrepancies noticed on such verification were not material andthe same have been properly dealt with in the books of account;

(c) The disposal of fixed assets during the year cannot be regarded as substantial anddo not affect the going concern assumption;

2. (a) As explained to us, Inventories (except stock lying with third parties, forwhich confirmations obtained in respect of such inventory) have been physically verifiedduring the year by the management;

(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) In our opinion, the Company is maintaining proper records of inventory.Discrepancies noticed on physical verification were not material, and the same have beenproperly dealt with in the books of account;

3. According to information and explanations given to us, the Company has neithergranted nor taken loans, secured or unsecured, from parties covered in the registermaintained under section 301 of the Act. Therefore, the provisions of clause 4(iii) of theOrder, are not applicable to the Company.

4. In our opinion, and according to the information and explanations given to us, thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regard to purchase of inventories and fixed assets and forsale of goods & services. We have not come across any major weakness in internalcontrol;

5. (a) In our opinion and according to the information and explanations given to us,the particulars of contracts or arrangements that need to be entered in the registermaintained under Section 301 of the Companies Act, 1956 have been so entered;

(b) According to the information and explanations given to us, there are notransactions of purchase of goods and materials and sale of goods, materials and servicesexceeding Rs.5,00,000/- during the year in respect of each party made in pursuance ofcontracts or arrangements entered in the register maintained under Section 301 of theCompanies Act, 1956;

6. In our opinion and according to the information and explanations given to us, theCompany has complied with the provisions of Section 58A and 58AA of the Companies Act,1956, and the rules made thereunder .

7. In our opinion, the Company has an internal audit system commensurate with the sizeand nature of its business;

8. We have broadly reviewed the cost records pursuant to the Rules made by the CentralGovernment for the maintenance of cost records under Section 209(1)(d) of the CompaniesAct, 1956 and we are of the opinion that prima facie, the prescribed accounts and recordshave been made and maintained. We have, however, not made detailed examination of recordswith a view to determine whether they are accurate;

9. (a) According to the records of the Company, the Company is regular in depositingundisputed statutory dues including Provident Fund (PF), Investor Education &Protection Fund, Employees' State Insurance (ESI), Income Tax, Sales Tax, Wealth Tax,Service Tax, Custom Duty, Excise Duty and Cess and other statutory dues with theAppropriate Authorities. According to the information and explanation given to us, thereare no undisputed amounts payable in respect of such statutory dues which have remainedoutstanding as at 31st March, 2014 for a period of more than six months from the day theybecome payable;

(b) The disputed statutory dues aggregating Rs. 119.24 lacs, that have not beendeposited on account of disputed matters pending before Appropriate Authorities are asunder:

Name of the Statute Nature of Dues Amount (in lacs) Period to which the amount relates Forum where dispute is pending
Central Excise Act Excise Duty 79.83 (net of advance of Rs. 5.44 lacs) 2005-2011 Central Excise and Service Tax Appellate Tribunal
Central Excise Act Excise Duty 5.02 2010-2013 Departmental Authorities
Central Sales Tax and Local Sales Tax Act Central Sales Tax and Local Sales Tax 28.90 (Net advance of Rs. 6.77 lacs) 2006-2007 and 2008-2009 Departmental Authorities
Cental Sales Tax and Local Sales Tax Act Cental Sales Tax and Local Sales Tax 5.49 (Net advance of Rs. 2.74 lacs) 2011-2012 Sales Tax Appellate Tribunal

10. The Company does not have accumulated losses. The Company has incurred cash lossesduring the financial year covered by our audit but not incurred cash losses in theimmediately preceding financial year;

11. In our opinion and according to the information and explanations given to us, theCompany has not defaulted in repayment of dues to banks;

12. The Company has not granted any loans and advances on the basis of security by wayof pledge of shares, debentures and other securities. Therefore the provision of clause4(xii) of the order are not applicable to the Company;

13. The provisions of any special statute applicable to Chit Funds, Nidhis or MutualBenefit Funds / Societies are not applicable to the Company;

14. As the Company is not dealing or trading in shares, securities, debentures andother investments, the provisions of Clause 4(xiv) of the Companies (Auditor's Report)Order, 2003 is not applicable to the Company;

15. In our opinion and according to the information and explanations given to us, theCompany has not given guarantees for loans taken by others from banks or financialinstitutions;

16. The Company has not taken any term loans during the year;

17. According to the Cash Flow Statement and other records examined by us and on thebasis of information and explanations given to us, on and overall basis, funds raised onshort term basis have, prima facie, not been used during the year for Long TermInvestment;

18. The Company has not made any preferential allotment of shares during the year;

19. The Company has not issued any debentures during the year;

20. The Company has not raised any money by way of public issue during the year;

21. As per the information and explanations given to us, no material fraud on or by theCompany has been noticed during the year.

For and on behalf of
KHANDWALA & SHAH,
Chartered Accountants,
(Registration No.105069W)
(UDAY J. SHAH)
Place: Mumbai Partner
Dated: 28th May, 2014 Membership No.033038

AUDITORS' CERTIFICATE

Auditors' Certificate regarding compliance of conditions of Corporate Governance underClause 49 of the Listing Agreement

To the Members of Hind Rectifiers Limited

We have examined the compliance of conditions of Corporate Governance by HindRectifiers Limited ('the Company'), for the year ended 31st March, 2014, as stipulated inClause 49 of the Listing Agreement of the said Company with Stock Exchanges in India.

The compliance of conditions of Corporate Governance is the responsibility of theCompany's management. Our examination was carried out in accordance with the"Guidance Note on Certification of Corporate Governance (as stipulated in Clause 49of the Listing Agreement)", issued by the Institute of Chartered Accountants of Indiaand was limited to procedures and implementation thereof, adopted by the Company, forensuring the compliance of the conditions of the Corporate Governance. It is neither anaudit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanationsgiven to us, we certify that the Company has complied with the conditions of CorporateGovernance as stipulated in the abovementioned Listing Agreement.

We further state that such compliance is neither an assurance as to the futureviability of the Company nor the efficiency or effectiveness with which the management hasconducted the affairs of the Company.

For and on behalf of
KHANDWALA & SHAH,
Chartered Accountants,
(Registration No.105069W)
(UDAY J. SHAH)
Place: Mumbai Partner
Dated: 28th May, 2014 Membership No.033038
   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Bharat Electron 14,032.80 16.19 2.00 3.11 14.9 17.8 0.00
Honeywell Auto 4,376.11 45.37 5.60 15.51 11.6 16.1 0.00
Genus Power 695.51 11.48 1.60 5.35 9.6 9.1 0.65
Centum Electron 517.13 16.97 4.96 4.97 33.8 35.7 0.36
Yokogawa India 415.63 16.07 2.55 0.00 17.7 26.3 0.00
PG Electro. 221.86 0.00 1.81 127.43 0.0 0.0 0.68
Zicom Electron. 202.40 16.99 1.24 5.47 5.8 11.6 0.36
Schneider APW 87.73 0.00 2.45 58.50 -12.6 -3.8 0.64
Tektronix (I) 78.35 61.49 2.52 0.00 4.2 8.9 0.00
Hind Rectifiers 67.27 0.00 1.03 0.00 -7.3 -5.9 0.31
Kernex Microsys. 63.81 0.00 0.49 5.53 0.5 3.8 0.13
MIC Electronics 55.56 0.00 0.16 18.46 -5.6 1.3 0.39
JCT Electronics 51.24 0.00 -0.11 0.00 0.0 0.0 0.00
BPL Display Dev 33.00 0.00 -0.24 0.00 0.0 0.0 50.59
Circuit Systems 26.37 67.89 0.77 4.49 1.1 3.7 0.12

Futures & Options Quote

 
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Key Information

Key Executives:

S K Nevatia , Chairman & Managing Director  

Uma S Nevatia , Executive Vice Chairperson  

D R Mehta , Director  

Niraj Ramkrishna Bajaj , Director  


Company Head Office / Quarters:
Lake Road,
Bhandup (W),
Mumbai,
Maharashtra-400078
Phone : 91-22-25696789
Fax :
E-mail : corporate@hirect.com
Web : http://www.hirect.com
Registrars:
Adroit Corp. Services Pvt Ltd
19/20 Jaferbhoy Ind
1st Floor Makwana Rd
Marol Naka
Mumbai - 400 059

Fund Holding

 
Scheme Name No. of Shares
No data found

Calendar

Aug-2014
M T W T F S S
28 29 30 31 01 02 03
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