To the Board of Directors HITTCO TOOLS LIMITED
REPORT ON STANDALONE FINANCIAL RESULTS
FOR QUARTER AND YEAR ENDED AS ON 31s1 MARCH, 2023
PURSUANT TO THE REGULATION 33 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE
REQUIREMENTS) REGULATIONS, 2015
Opinion
We have audited the accompanying Standalone financial results of Hittco Tools Limited
("the Company") for the year ended March 31, 2023, and the statement of assets
and liabilities and the standalone statement of cash flows as at and for the year ended on
that date (the Standalone Financial Results" comprising of Standalone Statement of
Profit and Loss for the quarter / twelve months ended on 31st March 2023,
Standalone Balance Sheet as at 31st March 2023 and Standalone Statement of Cash
Flows for the year ended on 31st March 2023), attached herewith, being
submitted by the company pursuant to the requirement of Regulation 33 of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, (Listing Regulations)
In our opinion and to the best of our information and according to the explanations
given to us, the statement:
(i) Is prepared in accordance with the requirements of Regulation 33 of the SEBI
(Listing Obligations and disclosure requirements) Regulations, 2015 read with SEBI
Circular No. CIR/CFD/FAC/62/2016 dated July 5, 2016 in this regard; and
(ii) Gives a true and fair view in conformity with Indian Accounting Standard 34
"Interim Financial Reporting" (Ind-AS 34) prescribed under section 133 of the
Companies Act, 2013 (the "Act") read with relevant rules issued thereunder and
other accounting principles generally accepted in India of the net profit and total
comprehensive income and other financial information of the Company for the three months
ended March 31,2023
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditors Responsibilities for the Audit of the
Standalone Ind AS 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 together with tire ethical requirements
that are relevant to our audit of the financial statements under the provisions of the
Companies Act, 2013 and the Rules there under, 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 opinion.
The Statement includes the results for the quarter ended March 31, 2023, being the
balancing figure between the audited figures in respect of the full financial year and the
published year to date figures up to the third quarter of the current financial year which
were subject to limited reviewed by us.
Responsibility of Management and Board of Directors for the Standalone Financial
Statements
The statement is the responsibility of the Companys Management and approved by the
Board of Directors, has been complied from the related audited interim condensed
standalone financial statements for the year ended March 31, 2023. The Companys
Management and Board of Directors is responsible for the matters stated in section 134(5)
of the Companies Act, 2013 ("the Act") with respect to the preparation of these
standalone financial results that give a true and fair view of the net profit, and other
comprehensive income and other financial information in accordance with the recognition
and measurement principles laid down in Ind AS 34, prescribed under section 133 of the
Act, read with relevant rules issued thereunder and other accounting principles generally
accepted in India and in compliance with Regulation 33 of the Listing Regulations.
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 financial statement that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone Financial Results, the Management and Board of Directors
are 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 the Board of Directors either intends to liquidate the Company
or to cease operations, or has no realistic alternative but to do so.
That Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibilities for the Audit of Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone
financial results as a whole 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 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
financial results, 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 Companies Act, 2013, we are also responsible for expressing our opinion on whether
the company has adequate internal financial controls system with reference to standalone
financial statements 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 Management and Board of Directors.
• Conclude on the appropriateness of management and Board of Directors use of the
going concern basis of accounting in preparation of standalone financial results and,
based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Companys 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 thefinancial results
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
financial statements, including the disclosures, and whether the standalone financial
statements represent the underlying transactions and events in a manner that achieves fair
presentation.
Materiality is the magnitude of misstatements in the financial results that,
individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the 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 any
identified misstatements in the standalone financial results.
We communicate with the management 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.
For BOTHRA NIRMAL & ASSOCIATES
(Chartered Accountants)
Firm Registration No. 322103E
SD/-
Nirmal Kumar Bothra
(Partner)
Membership No. 052248
Place: Kolkata
Dated: 30/05/2023
UDIN: 23052248BGXNLH4388
Annexure "A" to the Independent Auditors Report
The Annexure referred to in our Independent Auditors Report
to the members of the Company on the Standalone financial statements
for the year ended 31st March, 2023,
In terms of the information and explanation sought by us and given by the Company and
the books and records examined by us in the normal course of audit and to the best of our
knowledge and belief, we state that
%
(a) (i) The Company has maintained proper records showing full particulars, including
quantitative details and situation of Property, plant and equipment.
(ii) The Company has maintained proper records showing full particulars of Intangible
assets.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company doesnt have any regular programme
of physical verification of its Property, plant and equipment by which all Property, plant
and 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 of
mortgaged properties. Based on our audit procedures and according to the information and
explanations given to us, we report that all title deeds of immovable proprieties are held
in the name of the Company.
(d) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not revalued its property,
plant and equipment (including Right-of-use assets) or Intangible assets or both during
the year.
(e) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there are no proceedings initiated or pending
against the Company for holding any benami property under the Prohibition of Benami
Property Transactions Act, 1988 and rules made thereunder
2. (i) The inventory has been physically verified by the management during the year. In
our opinion, the frequency of such verification is reasonable and procedures and coverage
as followed by management were appropriate. No discrepancies were
noticed on verification between the physical stocks and the book records that were 10%
or more in the aggregate for each class of inventory.
(ii) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has been sanctioned working capital
limits of fifty-five lakhs rupees, in aggregate, from banks on the basis of security of
promotors personal property.
3. (a) According to the information and explanations given to us and on the basis of
our examination of the records of the Company, the Company has made any investments,
provided guarantee or security or granted any advances in the nature of loans, secured or
unsecured, to companies, firms, limited liability partnerships or any other parties during
the year. The Company has granted advance to one company and LLP during the year, details
of the loan is stated in sub-clause (a) below. The Company has not granted any loans,
secured 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 and
explanations given to us, the Company has not granted any advance.
(b) According to the information and explanations given to us and based on the audit
procedures conducted by us, we are of the opinion that the terms and conditions of the
loans 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 our
examination of the records, the Company has not given any loans, or provided any guarantee
or security as specified under Section 185 of the Companies Act, 2013 and the Company has
not provided any guarantee or security as specified under Section 186 of the Companies
Act, 2013. Further, the Company has complied with the provisions of Section 186 of the
Companies Act, 2013 in relation to loans given and investments made.
5. The Company has not accepted any deposits or amounts which are deemed to be deposits
from the public. Accordingly, clause 3(v) of the Order is not applicable
6. According to the information and explanations given to us, the Central Government
has not prescribed the maintenance of cost records under Section 148(1) of the Companies
Act, 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, Duty
of excise and Value added tax during the year since effective 1 July 2017, these statutory
dues has been subsumed into GST. According to the information and explanations given to us
and on the basis of our examination of the records of the Company, amounts deducted/
accrued in the books of account in respect of undisputed statutory dues including Goods
and Services Tax (GST), Provident fund, Employees State Insurance, Income-tax, Duty of
Customs, Cess and other material statutory dues have generally been regularly deposited
with the appropriate authorities. According to the information and explanations given to
us, no undisputed amounts payable in respect of GST, Provident fund, Employees State
Insurance, Income-tax, Duty of Customs, Cess and other material statutory dues were in
arrears as at 31 March 2023 for a period 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 of
GST, Provident fund, Employees State Insurance, Income-tax, Sales tax, Service tax, Duty
of Customs, Value added tax, Cess or other statutory dues which have not been deposited by
the 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 |
T races |
2022-23 |
96,242/- |
| 3 |
T races |
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 our
examination of the records of the Company, the Company has not surrendered or disclosed
any transactions, previously unrecorded as income in the books of account, in the tax
assessments 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 of
our examination of the records of the Company, the Company has loans or borrowings from
any lender during the year. But the company has not defaulted in repayments of its
principal and interest during the year.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not been declared a wilful
defaulter by any bank or financial institution or government or government authority.
(c) According to the information and explanations given to us by the management, the
Company has obtained any Vehicles loans during the year.
(d) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds have been raised
on short-term basis and utilized for long term purpose by the Company. Accordingly, clause
3(ix)(d) of the Order is not applicable.
(e) According to the information and explanations given to us and on an overall
examination of the financial statements of the Company, we report that the Company has not
taken any funds from any entity or person on account of or to meet the obligations of its
subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3(ix)(e) of the
Order is not applicable.
(f) According to the information and explanations given to us and procedures performed
by us, we report that the Company has not raised loans during the year on the pledge of
securities held in its subsidiaries as defined under the Companies Act, 2013. Accordingly,
clause 3(ix)(f) of the Order is not applicable.
10. (a) The Company has not raised any moneys by way of initial public offer or further
public offer (including debt instruments). Accordingly, clause 3(x)(a) of the Order is not
applicable.
(b) According to the information and explanations given to us and on the basis of our
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the 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 to
the information and explanations given to us, considering the principles of materiality
outlined in Standards on Auditing, we report that no fraud by the Company or on the
Company has been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us, no report under
subsection (12) of Section 143 of the Companies Act, 2013 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) We have taken into consideration the whistle blower complaints received by the
Company during the year while determining the nature, timing and extent of our audit
procedures.
12. According to the information and explanations given to us, the Company is not a
Nidhi 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, the
transactions with related parties are in compliance with Sections 177 and 188 of the
Companies Act, 2013, where applicable, and the details of the related party transactions
have been disclosed in the standalone financial statements as required by the applicable
Indian Accounting Standards.
14. Based on information and explanations provided to us and our audit procedures, in
our opinion, the Company has an internal audit system commensurate with the size and
nature of its business.
15. In our opinion and according to the information and explanations given to us, the
Company has not entered into any non-cash transactions with its directors or persons
connected to its directors and hence, provisions of Section 192 of the Companies Act, 2013
are not applicable to the Company.
16. (a) The Company is not required to be registered under Section 45-IA of the Reserve
Bank 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-IA of the Reserve
Bank of India Act, 1934. Accordingly, clause 3(xvi)(b) of the Order is not applicable.
(c) The Company is not a Core Investment Company (C1C) as defined in the regulations
made by the Reserve Bank of India. Accordingly, clause 3(xvi)(c) of the Order is not
applicable.
(d) According to the information and explanations provided to us during the course of
audit, 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 immediately
preceding 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 the
financial ratios, ageing and expected dates of realization of financial assets and payment
of financial liabilities, other information accompanying the financial statements, 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 that
the Company is not capable of meeting its liabilities existing at the date of balance
sheet as and when they fall due within a period of one year from the balance sheet date.
We, however, state that this is not an
assurance as to the future viability of the Company. We further 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 sheet date, will get discharged by the Company as and when they fall due.
20. In our opinion and according to the information and explanations given to us, there
is no unspent amount under sub-section (5) of Section 135 of tine Companies Act, 2013
pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not
applicable.
For NIRMAL BOTHRA ASSOCIATES
(Chartered Accountants)
Firm Registration No. 322103E
SD/-
NIRMAL KUMAR BOTHRA
(Partner)
Membership No. 052248
Place: Kolkata
Dated: 30/05/2023
UD1N: 23052248BGXNLH4388
Annexure "B" to the Independent Auditors Report
Report on the Internal Financial Controls under Clause
(i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of HITTCO
TOOLS LIMITED ("tine Company") as of 31st March, 2023 in conjunction with our
audit of the standalone financial statements of the Company for the year ended on that
date.
Management and Board of Directors Responsibility for Internal Financial Controls
The Companys management and the Board of Directors are 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 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 on Audit of Internal Financial Controls Over Financial Reporting
(the "Guidance Note") and the Standards on Auditing, issued by Institute of
Chartered Accountants of India and deemed to be prescribed under section 143(10) of the
Companies Act. 2013, to the extent applicable to an audit of internal financial controls,
both applicable to an audit of Internal Financial Controls and, both issued by the
Institute of Chartered Accountants of India. 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 was 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 judgement, including the assessment of the risks of
material misstatement of the 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 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 authorizations of
management and 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, the Company has. in all material respects, an adequate internal
financial controls system over financial reporting and such Internal financial controls
over financial reporting were operating effectively as at 31st March 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 on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India
For BOTHRA NIRMAL ASSOCIATES
(Chartered Accountants)
Firm Registration No. 322103E
SD/-
Nirmal Kumar Bothra
(Partner)
Membership No. 052248 Place: Kolkata
Dated: 30/05/2023
UDIN: 23052248BGXNLH4388
+91-9892691696
