To The Members of Hipolin Limited
Report on the Audit of Standalone Ind AS Financial Statements
Opinion
We have audited the accompanying standalone Ind AS financial statements
of The HIPOLIN LIMITED ("the Company"),which comprises of Balance Sheet as at
March 31, 2023, the Statement of Profit and Loss, including Other Comprehensive Income,
the Statement of Changes in Equity, the Statement of Cash Flow for the year ended and
notes to the financial statements, including a summary of significant accounting policies
and other explanatory information(here in after referred to as " the financial
statement").
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone Ind AS financial statements give the
information required by the Companies Act, 2013 (the Act) in the manner so required and
give a true and fair view in conformity with the Indian Accounting Standards prescribed
under section 133 of the Act read with Companies (Indian Accounting Standards) Rules,
2015, as amended, ("Ind AS") and other accounting principles generally accepted
in India, of the state of affairs of the company as at March 31, 2023, its Profit
including other comprehensive income, changes in equity and its cash flows for the year
ended on that date.
Basis for Opinion
We conducted our audit of the Standalone Ind AS financial statements in
accordance with the Standards on Auditing (SAs) as specified under section 143(10) of the
Act. Our responsibilities under those Standards are further described in the
Auditors Responsibilities for the audit of the Financial Statements section of our
report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India (ICAI) together with the ethical
requirements that are relevant to our audit of the standalone Ind AS financial statements
under the provisions of the Act and the Rules made thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significant in our audit of the standalone Ind AS financial statements for
the year ended March 31, 2023.These matters were addressed in the context of our audit of
the standalone Ind AS financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters. We have determined the matters
described below to be the key audit matters to be communicated in our report.
| Key audit matters |
How our audit addressed the key audit matter |
| Revenue Recognition |
Principal Audit Procedures |
| "Revenue from contracts with
customers" is recognized on transfer of control of promised goods to a customer at an
amount that reflects the consideration to which the Company is expected to be entitled to
in exchange for those goods. |
Our audit procedures on adoption of Ind AS
115, Revenue from contracts with Customers (‘Ind AS 115), the new standard on
revenue recognition, includes the following |
| The Revenue standard establishes a comprehensive framework
for determining whether, how much and when revenue should be recognized. This involves
certain key judgments relating to identification of distinct performance obligations,
determination of the transaction price, allocation of the transaction price to identified
performance obligations, and the appropriateness of the revenue recognition methodology. |
Evaluated the design and implementation of the processes and
internal controls relating to implementation of the new revenue recognition standard. |
| Additionally, The standard mandates robust disclosures in
respect of revenue and periods over which the remaining performance obligations will be
satisfied subsequent to the balance sheet date. |
Evaluated the detailed analysis performed by the management
across revenue streams by selecting samples for the existing contracts with customers and
verified the appropriateness of identification of distinct performance obligations,
determination of the transaction price, allocation of the transaction price to identified
performance obligations and the appropriateness of the revenue recognition methodology
and, evaluated the appropriateness of the accounting policy and disclosures provided under
the new revenue standard and assessed the completeness and mathematical accuracy of the
relevant disclosures. |
| Revenue is one of the key profit drivers and is therefore
susceptible to misstatement. Cut-off is the key assertion in so far as revenue recognition
is concerned, since an inappropriate cut-off can result in material misstatement of
results for the year. |
|
Information Other than the Standalone Ind AS Financial Statements and
Auditors report thereon:
The Companys Board of Directors is responsible for the
preparation of other information. The Other information comprises the information included
in the Management Discussion and
Analysis, Boards Report including Annexure to the Board report,
Corporate Governance report and Shareholders information, but does not include the
standalone Ind AS financial statements and our auditors report thereon.
Our opinion on the standalone Ind AS financial statements does not
cover the other information and we do not express any form of assurance conclusion there
on.
In connection with our audit of the standalone Ind AS financial
statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the standalone Ind AS
financial statements or our knowledge obtained during the course of our audit or otherwise
appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a
material misstatement of this other information; we are required to report that fact. We
have nothing to report in this regard.
Responsibilities of Management for the Standalone Ind AS Financial
Statements:
The Companys Board of Directors is responsible for the matters
stated in section 134(5) of the
Act with respect to the preparation of these standalone Ind AS
financial statements that give a true and fair view of the financial position, financial
performance including other comprehensive income, changes in equity and cash flows of the
Company in accordance with the accounting principles generally accepted in India,
including the Indian accounting Standards specified under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility
also includes maintenance of adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for preventing and detecting
frauds and other irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the standalone Ind AS financial
statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error. In preparing the standalone Ind AS financial statements, the
Management is responsible for assessing the Companys ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the
Companys financial reporting process.
Auditors Responsibilities for the Audit of the Standalone Ind AS
Financial Statements:
Our objectives are to obtain reasonable assurance about whether the
standalone Ind AS financial statements are free from material misstatement, whether due to
fraud or error, and to issue an auditors report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these standalone Ind AS financial
statements. As part of an audit in accordance with SAs, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also: ? Identify and assess
the risks of material misstatement of the standalone Ind AS financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
? Obtain an understanding of internal control relevant to the audit in
order to design audit procedures that are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the
Company has adequate internal financial control system in place and the operating
effectiveness of such controls.
? Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by the management.
? Conclude on the appropriateness of Managements use of the going
concern basis of accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the
entitys ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors report to the
related disclosures in the standalone Ind AS financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditors report. However, future events or conditions
may cause the Company to cease to continue as a going concern.
? Evaluate the overall presentation, structure and content of the
standalone Ind AS financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone Ind AS
financial statements that individually or in aggregate makes it probable that the economic
decisions of a reasonably knowledgeable user of the standalone Ind AS financial statements
may be influenced. We consider quantitative materiality and qualitative factors in (i)
Planning the scope of our audit work and in evaluating the results of our work and (ii) To
evaluate the effect of an identified misstatements in the standalone Ind AS financial
statements.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the standalone Ind
AS financial statements for the financial year ended March 31, 2023 and are therefore the
key audit matters. We describe these matters in our auditors report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, we report that: a) We have
sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit. b) In our opinion,
proper books of account as required by law have been kept by the Company so far as it
appears from our examination of those books and records. c) The Balance sheet, the
Statement of Profit & Loss including other comprehensive income, Statement of Changes
in Equity and the Cash Flow Statement dealt with by this Report are in agreement with the
books of account. d) In our opinion, the aforesaid standalone Ind AS financial statements
comply with the Accounting Standards specified under Section 133 of the Act read with
Companies (Indian Accounting Standards) Rules, 2015, as amended; e) On the basis of the
written representation received from the directors as on March 31, 2023 taken on records
by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from
being appointed as a Director in terms of Section 164(2) of the Act. f) With respect to
the adequacy of the internal financial controls over financial reporting of the Company
with reference to these standalone Ind AS Financial Statements and the operating
effectiveness of such controls, refer to our separate Report in Annexure "A" to
this report. g) With respect to the matters to be included in the Auditors report in
accordance with the rule
11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion
and to the best of our information and according to the explanations given to us: (i) The
Company has disclosed the impact of pending litigations on its financial position in its
standalone Ind AS financial statements. [Refer note no 39 to standalone Ind AS financial
statements.
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable losses.
(iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company.
(iv) (a) The management has represented that to the best of its
knowledge and belief, no funds (which are material either individually or in the aggregate
) have been advanced or loaned or invested (either from borrowed funds or share premium or
any other sources or kind of funds) by the company to or any other person or entity
including foreign entity (" Intermediaries"), with the understanding , whether
recorded in writing or otherwise, that the intermediary shall, whether , directly or
indirectly lend or invest in the persons or entities identified in any manner whatsoever
by or on behalf of the company("Ultimate Beneficiaries") (b) The management has
represented , that, to the best of its knowledge and belief , no funds (which are material
either individually or in the aggregate) have been received by the company from any person
or entity, including foreign entity (" Funding Parties"), with the
understanding, whether recorded in writing or otherwise , that the company shall, whether
directly or indirectly, lend or invest in other persons or entities identified in the
manner whatsoever by or on behalf of the Funding Party (" Ultimate
Beneficiaries") or provide any guarantee , security or the like on behalf of the
Ultimate Beneficiaries ; and (c) Based on the audit procedures that have been considered
reasonable and appropriate in the circumstances, nothing has come to our notice that has
caused us to believe that the representations under sub-clause (i) and (ii) above of Rule
11(e), as provided under (a) and (b) above , contain any material misstatement.
(v) The Company has not declared or paid any dividend during the year
under audit.
(vi) Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for
maintaining books of account using accounting software which has a feature of recording
audit trail (edit log) facility is applicable to the Company with effect from April 1,
2023, and accordingly, reporting under Rule
11(g) of Companies (Audit and Auditors) Rules, 2014 is not applicable
for the financial year ended March 31, 2023.
2. As required by the Companies (Auditors Report) Order, 2020
("the Order") issued by the
Central Government of India in terms of sub-section (11) of section 143
of the Act, we give in the
Annexure "B" a statement on the matters Specified in
paragraphs 3 and 4 of the Order.
| Date : 26/05/2023 |
For S D P M & Co. |
| Place : Ahmedabad |
Chartered Accountants |
|
Sd/- |
|
Sunil Dad |
|
Partner |
|
M.No. 120702 |
|
FRN : 126741W |
|
UDIN: 23120702BGWONV6982 |
ANNEXURE "A" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 1(f) under ‘Report on Other Legal and
Regulatory Requirements of the Independent Auditors Report of even date to the
members of HIPOLIN LIMITED on the financial statements for the year ended 31st March,
2023)
Report on the Internal Financial Controls Over Financial Reporting
under Clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 ("the
Act")
We have audited the internal financial controls over financial
reporting of Hipolin Limited ("the Company") as of March 31, 2023, in
conjunction with our audit of the standalone Ind AS Financial Statements of the Company
for the year ended on that date.
Managements Responsibility for Internal Financial Controls:
The Companys management is responsible for establishing and
maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the
"Guidance Note") issued by the Institute of Chartered Accountants of India.
These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to Companys policies, the
safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.
Auditors Responsibility:
Our responsibility is to express an opinion on the Companys
internal financial controls over financial reporting based on our audit. We conducted our
audit in accordance with the Guidance Note and the Standards on Auditing prescribed under
Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of
internal financial controls. Those Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting were
established and maintained and if such controls operated effectively in all material
respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatement of the standalone Ind AS Financial Statements, whether due
to fraud or error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Companys internal
financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companys internal financial control over financial reporting is
a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of standalone Ind AS Financial Statements for external
purposes in accordance with generally accepted accounting principles. A Companys
internal financial control over financial reporting includes those policies and procedures
that: (1) Pertain to the maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of the Company; (2)Provide
reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the Company are being made only in accordance with the
authorization of the management and the directors of the Company and; (3)Provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use or disposition of the Companys 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
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the 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 given to us, the Company has, in all material respects, an adequate internal
financial control system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at March 31, 2023 , based on the
internal control over financial reporting criteria established by the company considering
the essential components of internal control stated in the Guidance Note.
| Date : 26/05/2023 |
For S D P M & Co. |
| Place : Ahmedabad |
Chartered Accountants |
|
Sd/- |
|
Sunil Dad |
|
Partner |
|
M.No. 120702 |
|
FRN : 126741W |
|
UDIN: 23120702BGWONV6982 |
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 2 under ‘Report on Other Legal and
Regulatory Requirements of our report of even date) i. In respect of companys
fixed assets: a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. The Company has a program of verification to cover all the items of
fixed assets in phased manner which, in our opinion, is reasonably having regard to the
size of the Company and the nature of its assets. Pursuant to the program, certain fixed
assets were physically verified by the management during the year. According to
information and explanations given to us by the management, no material discrepancy was
noticed on such verification.
c. According to information and explanations given by the management,
the title deeds of immovable properties, included under tangible fixed assets, are held in
the name of the Company.
d. According to the information and explanations provided to us, the
company has not revalued any Property, Plant and Equipment or intangible asset or both
during the year.
e. There has been no proceedings initiated or are pending against the
company for holding any benami property under the Benami Transactions (Prohibition) Act,
1988 and rules made thereunder.
ii. a) We have been informed that, inventories have been physically
verified by the management at reasonable intervals. In our opinion, the frequency of
verification is reasonable with regard to the size of company. According to information
and explanations given to us by the management, no material discrepancy was noticed on
such verification.
b) the company does not have any working capital limits in excess of
five crores rupees (at any point of time during the year), in aggregate, from banks or
financial institutions on the basis of security of current assets. Accordingly, the
provisions of clause 3(ii) of the Order are not applicable.
iii. The Company has not made investments in, provided any guarantee or
security or granted any loans or advances in the nature of loans, secured or unsecured, to
companies, firms, Limited
Liability Partnerships or any other parties.
iv. According to the information and explanations given to us, the
Company has not granted loans and made any investments or provided any guarantee or
security to the parties covered under section 185 and 186. Accordingly, paragraph 3(iv) of
the Order is not applicable.
v. According to the information and explanation given to us, the
company has not accepted the any deposits and does not have any unclaimed deposits as at
31st March, 2023 and therefore, the provisions of the clause 3(v) of the Order are not
applicable to the company.
vi. The company is registered under MSME Act, 2006. As per the
Companys ( Cost Records and Audit ) Rules 2014 as amended by Companys ( Cost
Records and Audit ) Amendment Rules 2014 issued by the Central Government , the company is
not required to maintain the cost records hence the provision of Section 148(6)) &
Clause (vi) of Paragraph 3 of the said Order are not applicable to the Company.
vii. (a) According to the information and explanation given to us, the
company has generally been regular in depositing undisputed statutory dues including
Provident Fund, Employees State
Insurance, Sales Tax, Goods & Service Tax, Duty of Customs, Cess
and any other statutory dues applicable to it with appropriate authorities and no such
undisputed amounts were in arrears for a period of more than six months from the date they
became payable. (b) According to the records of the Company and information and
explanations provided to us, particulars of disputed amounts payable in respect of,
Provident Fund, Income Tax, Goods and Service Tax, Sales Tax, Value Added Tax, Customs
Duty, Service Tax, Cess and other material statutory dues, as on the last day of the
period ending March 31, 2023 is NIL.
viii. In our opinion and according to the information and explanations
given to us, there are no transactions which were not recorded in the books of account
that have been surrendered or disclosed as income during the year in the tax assessments
under the Income Tax Act , 1961 (43 of 1961) , accordingly paragraph 3(viii) of the order
is not applicable.
ix. (a) According to the records made available to us and information
and explanation given to us by the management, in our opinion the company has not
defaulted in repayment of dues to a bank or financial institution.
(b) the company has not been declared wilful defaulter by any bank of
financial institution.
(c) According to the records made available to us, the term loans were
applied for the purpose for which the loans were obtained.
(d) No funds have been raised on short term basis by the company. Thus
the reporting under clause 3(ix)(d) of order is not applicable.
(e) According to the information and explanation given to us, the
company has not raised any loans during the year on the pledge of securities held in its
subsidiary.
x. According to the information and explanation given to us and based
on our examination of the records of the company, the company has not raised money by way
of initial public offer of further public offer during the year.
xi. (a) According to the information and explanation given to us, no
fraud by the company or no material fraud on the company by its officers or employees has
been noticed or reported during course of our audit.
(b) According to the information and explanation given to us, no report
has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies
(Audit and Auditors) Rules, 2014 with the Central Government.
(c) The company has not received any whistle-blower complaints during
the year. So the clause 3(xi)(c) of the order is not applicable.
xii. According to the information and explanation given to us the
company is not a nidhi company hence clause 3(xii) of companies (auditors Report)
order 2020 is not applicable.
xiii. According to the information and explanation given to us and
based on our examination of the records of the company, all transactions with the related
parties are in compliance with sections 177 and 188 of Companies Act, 2013 where
applicable and the details have been disclosed in the Financial Statements, as required by
the applicable accounting standards.
xiv. The company have an internal audit system commensurate with size
and nature of its business. The reports of internal auditors have been considered by us.
xv. According to the information and explanation given to us and based on our examination
of the records of the company, the company has not entered into any non-cash transactions
with directors or persons connected with him. So the clause 3(xv) of the companies
(auditors Report) order 2020 is not applicable.
xvi. The company is not required to be registered under section 45-IA
of the Reserve Bank of India, 1934.
xvii. According to the information and explanation given to us and
based on our examination of the records of the company, the company has not incurred any
cash losses in the financial year but the company has incurred cash losses of Rs. 90.99
Lakhs in the immediately preceding financial year.
xviii. Based on our examination of the records of the company, there
has not been any resignation of the statutory auditors during the year. hence clause 3
(xviii) of companies (auditors Report) order 2020 is not applicable.
xix. On the basis of the financial ratios, ageing and expected dates of
realization of financial assets and payment of financial liabilities ,other information
accompanying the financial statements and our knowledge of the Board Of Directors and
management plans and based on our examination of the evidence supporting the assumptions ,
nothing has come to our attention, which causes us to believe that any material
uncertainty exists as on the date of the audit report indicating that Company is not
capable of meeting its liabilities existing as at the date of the date of the balance
sheet as and when they fall due within a period of one year from the balance sheet date.
We however state that our reporting is based on the facts up to the date of the audit
report and we neither give any guarantee nor any assurance that all liabilities falling
due within a period of one year from the balance date, will get discharged by the Company
as and when they fall due.
xx. The company is not having net worth of Rs. 500 crore or more , or
turnover of Rs. 1000 crore or more or a net profit of Rs. 5 crore or more during the
immediately preceding financial year and hence , provisions of Section 135 of the Act are
not applicable to the Company during the year. Accordingly, reporting under clause 3(xx)
of the order is not applicable for the year.
xxi. The reporting under Clause 3(xxi) of the Order is not applicable
in respect of audit of standalone financial statements. Accordingly, no comment in respect
of the said clause has been included in this report.
| Date : 26/05/2023 |
For S D P M & Co. |
| Place : Ahmedabad |
Chartered Accountants |
|
Sd/- |
|
Sunil Dad |
|
Partner |
|
M.No. 120702 |
|
FRN : 126741W |
|
UDIN: 23120702BGWONV6982 |
+91-9892691696
