To The Members of Hindusthan Udyog Limited
Report on the Audit of the Standalone tnd AS Financial Statements
Opinion
We have audited the accompanying Standalone ind AS Financial Statements of Hindusthan
Udyog Limited ("the
Company"), which comprise the Standalone Balance Sheet as at 31st March, 2025, and
the Standalone
Statement of Profit and Loss (including Other Comprehensive Income), the Standalone
Statement of Changes in
Equity and the Standalone Statement of Cash Flows for the year then ended, and notes to
the Standalone Ind AS
Financial Statements, including a summary of material accounting policies and other
explanatory information
[hereinafter referred to as the "Standalone Financial Statements").
in our opinion and to the best of our information and according to the explanations
given to us and based on
the consideration of reports of other auditors on separate financial statements, the
aforesaid Standalone ind AS
Financial Statements give the information required by the Companies Act, 2023, as amended
("the Act") in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted
in India, of the state of affairs of the Company as at March 31, 2025, and its Profit
including Other Comprehensive
Income, its cash flows and the changes in Equity 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) 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 the ethical
requirements that are
relevant to our audit of the Standalone Ind AS Financial Statements under the provisions
of the Companies Act,
2013 and the Rules made thereunder, and we have fulfilled our other ethical
responsibilities in accordance with
these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we
have obtained is
sufficientand appropriate to provide a basis for our audit opinion on the Standalone Ind
AS Financial Statements,
Emphasis of Matter
We draw attention to the following matters in the Notes to the Financial Statements:
a) Note No. 2 to the Financial Statements which describes that no provision for
amortization has been made
for long term Leasehold Land at Durgapur.
b) The company filed a lawsuit against Mahanadi Coalfields Ltd. For recovery of Rs,
91.93 iaos at Cuttack High
court for which no provision has been made In the accounts (Refer Note 3(d) of Standalone
Financial
Statements).
c) As the companys business activities fail mainly within a single primary business
segment viz. Engineering
(Steel Castings St Alloys); there are no operations under this segment. Note No. 22.3 of
Standalone Financial
Statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of
the Standalone Ind AS Financial Statements for the financial year ended March 31, 2025,
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. For each
matter
below, our description of how our audit addressed the matter is provided in that context.
We have determined the matter described below to be the key audit matter to be
communicated in our report.
We have fulfilled the responsibilities described in the Auditors responsibilities for the
audit of the standalone
Ind AS financial statements section of our jreport, including in relation to this matter.
Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks
of material misstate-
ment of the standalone Ind AS financial statements. The results of audit procedures
performed by us and by
other auditors of joint operations not audited by us, as reported by them in their audit
reports furnished to us by
the management, including the procedures performed to address the matter below, provide
the basis for our
audit opinion on the accompanying standalone Ind AS financial statements.
The Key Audit Matter |
How was the matter addressed in our audit |
Assessment of litigation and contingent liabilities and
their related disclosures {refer note 22.1 to the |
|
As at 31st March, 2025, Company has exposure _ , |
Our procedures included the following: |
Tested the design and implementation of internal control over the quantification of the estimates used as welt as the operating effectiveness of such control, |
|
Discussed with Companys tax/iegal team, the recent developments and status of the material litigations matters relating to Direct Tax and Indirect Tax which were reviewed and noted by the Management. |
|
Assess the adequacy of the companys disclosure. | |
* Based on the above work performed, Companys tax/legai teams assessment in respect of litigations related to Direct Tax and Indirect Tax and related disclosures under contingent liability in the financial statements are considered to be reasonable. |
Information Other than the 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 AnaBoards Report
including
Annexures to Boards Report, Corporate Governance and Shareholders ln^w^fei,^bu^oes 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
tp5c^tWfy>atibn and we do not
express any form of assurance conclusion thereon, ? /
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 Financial Statements or our knowledge obtained during the course of 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 and Those Charged with Governance for the Standalone Ind
AS Financial
Statement.
The Companys 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 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 Standard [ind AS) 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 pro visions 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 judgements 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 of the preparation and
presentation of the Standalone Ind
AS 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 Ind AS Financial Statements, the Board of Directors 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.
Those Board of Directors are 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 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 materia! misstatement when it
exists. Misstatements can
arise from fraud or error and are considered materia! 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, designand perform audit procedures responsivg^.4j^^^ks, and obtain
audit
evidence that is sufficient and appropriate to provide a basis for our $$)i6n.
The\risk of not detecting a
material misstatement resulting from fraud is higher than for one resffijjfe from error, 4$
fraud may involve
collusion, forgery, Intentional omissions, misrepresentations, or the ovem^^f
ihtefHalg&htrol.
* Obtain an understanding of internal control relevant to the audit in order to design
audit procedures
that are appropriate inthe 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 controls
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 in the Standalone Financial Statements made by the management and
Board of
Directors.
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 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 the 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.
Fiowever, 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 standalone Ind AS financial statements
represent the
underlying transactions and events in a manner that achieves fair presentation.
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
31,2025and 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 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 Companies Act, 2013, we give
in the Annexure A a
statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
2. As required by Section 143 (3) of the Act, we report that:
(a) We the other auditors whose reports we have relied upon, have sought and obtained
all the informa-
tion and explanations which to the best of our knowledge and belief were necessary for the
purposes of
our audit,
(c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive
income, the Cash
Flow Statement and Statement of Changes in Equity 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 representations received from the directors of the
Company as on March 31,
2025 taken on record by the Board of Directors, none of the directors is disqualified as
on March 31,
2025 from being appointed as a director in terms of Section 154 (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-B" to this report.
(g) With respect to the matter to be included in the Auditors Report under Section
197(16) of the Act: In
our opinion and according to the information and explanations given to us, the
remuneration paid by the
Company to its directors during the current year is in accordance with the provisions of
Section 197 of
the Act read with Schedule V of the Act.
(h) With respect to the other matters to be included in the Auditors Report in
accordance with 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 22.1 to the 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,
jit. There was no amount which was 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 materia! 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 in 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 other persons or entities identified in
any manner
whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide
any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
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 idenj$^&j&
pipy^manner
whatsoever by or on behalf of the Funding Party ("Ultimate BenVfoRhfe^j or probicle
any
guarantee, security or the like on behatf of the Ultimate BeneficIarte?S7 <:
(d) 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) 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 and also has not
proposed final
dividend for the year.
vi. Based on our examination which included test checks, the Company has used an
accounting software for
maintaining its books of account for the financial year ended March 31, 2025, which has a
feature of
recording audit traii (edit log) facility and the same has operated throughout the year
for ail relevant
transactions recorded in the software. Further, during the course of our audit we did not
come across any
instance of the audit trail feature being tampered with and the audit trail has been
preserved by the
Company as per the statutory requirements for record retention.
ANNEXURE A TO THE INDEPENDENT AUDITORS REPORT
(Referred to irt Paragraph 1 of Report on Other Legal and Regulatory Requirements of
our Report of even date to
the members}
On the basis of such checks as we considered appropriate and In terms of the
information and explanations given
to us, we state that:
i. (a)(A) The Company has maintaining proper records showing full particulars,
including quantitative details
and situation of Property, Plant and Equipment.
(B)The Company has no Intangible assets. Hence, reporting under this clause is not required.
(b) As explained to us, the Property, Plant and. Equipment, according to the practice of the Company, are
been physically verified by the management at reasonable intervals, in a phased
verification
programme, designed to cover all the items over a period of three years, which in our
opinion, is
reasonable having regard to the size of the company and nature of its business. Pursuant
to the
programme, a portion of the Fixed Assets has been physically verified by the management
during the
year and no materia! discrepancies between the book records and the physical Fixed Asset
has been
noticed.
(c) The title deeds of Immovable Properties disclosed in financial statements are held
in the name of the
company, however title deed of the immovable property disclosed below Is held in name of
Neptune
Exports Limited (Transferor company which is amalgamated with the company with effect from
01.04.2019}.
Description |
Gross carrying. value |
Held in name of | Whether promoter, director or their relative or employee |
Period held - indicate range, where appropriate |
Reason for not being held in name of company |
Building |
Rs.364.55 lakhs |
Neptune Exports Limited (Transferor Company which is amalgamated with the Company with effect from 01.04.2019.) |
NA | 01-04-19 | The Company has acquired on account of amalgamation and is in the process of registration. |
(d) The company has not revalued its. Property, Plant and Equipment during the year.
Hence, reporting
under this clause is not applicable.
(e) As per the information and explanation given to us, no proceedings have
b^rtrrit^ted during the year
or are pending against the Company as at March 31, 2025 for holding^^^emrhl^pperty
under the
Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) snd^bs made (hereunder.
iL {a}As per the information obtained by us, the inventories have been
physically verified by the management
at reasonable intervals by the management and in our opinion, the coverage and procedure
of such
verification by the management is appropriate; no discrepancies of 10% or more in
aggregate for each
class of inventory were noticed on such physical verification.
(b)The company has not been sanctioned working capital limits In excess of five crore
rupees, In
aggregate, from banks or financial institutions on the basis of security of current assets
during any point
of time of the year. Hence reporting under clause 3(ii)(b) of the Order is not applicable.
iii. The company has not provided any guarantee or security or granted any loans or
advances in the nature of
bans, secured or unsecured, to companies, firms, Limited Liability Partnerships or any
other parties.
{a) So comment under clause 3 (iii)(a)(A) and (B) does not arise.
(b] The investments made in its associate during the year which is not prejudicial to
the companys interests.
Other clauses i.e. (c), (d), (e) and [ff are not applicable.
iv. In our opinion and according to the information and explanations given to us by the
management, the
Company has complied with the provisions of section 185 and 186 of the Companies Act,
2013, where
applicable, with respect to the loans, investments, guarantees and security made.
v. According to information and explanation given to us the Company has not accepted
any deposits within the
meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules,
2014(as amended)
and no such order has been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank
of India or any court or any other tribunal. So, comment on clause 3(v)ofthe said Order
does not arise.
vl. Maintenance of Cost Records under sub-section (1) of section 148 of the Companies
Act, 2D13 is not
. applicable to the Company at present as there is no Revenue from Operations. Therefore,
the reporting
under clause 3(vi) of the Order is not applicable to the Company.
vii. (a) According to the records of the Company and as per the information and
explanations given to us, the
Company is regular in depositing undisputed statutory dues including Goods and Services
tax, provident fund,
Employee state insurance, Income Tax, sales Tax, Service Tax, duty of customs, duty of
excise, Value added
tax, cess and any other Statutory dues as applicable to the appropriate authorities during
the year. According
to the information and explanations given to us, no undisputed amounts payable were in
arresr as at 31st
March,2025 for a period of more than six months from the date they become payable
save and except
Professional tax of Rs. 2.85 (Rs in lacs).
[b) According to the records of the Company, the dues outstanding {net of amount paid
under dispute) of
. income-tax, sales tax, service tax, goods and services tax, duty on custom, duty of
excise, value added tax and
cess on account of any dispute, are as follows:
Name of the statute |
Nature of dues |
Amount {Tin lacs) |
Reiated Year |
Forum in which Dispute is Pending |
West Bengal Sales Tax |
Assessed Dues |
414,263 | 2004- 2005 |
WBCT(A/R) Board |
Central Sales Tax Act, 1956 |
Assessed Dues |
181,067 | 2004- 2005 |
WBCT{A/R) Board |
Central Sales Tax Act,1956 |
Assessed Dues |
1,634,285 | 1998- 1999 |
Registrar Maharashtra Sales Tax Tribunal, Mumbai |
Central Sales Tax Act,1956 |
Assessed Dues |
5,926,481 | 1999- 2000 |
Deputy Commissioner of Sales Tax(Appeal), Nagpur |
Bombay Sales Tax Act,1959 |
Assessed Dues |
1,044,631 | 2000- 2001 |
Deputy Commissioner of Sales Tax(Appeal), Nagpur |
Central Sales Tax Act,1956 |
Assessed Dues |
1,389,004 | 2000- 2001 |
Deputy Commissioner of Sales Tax(Appeai), Nagpur |
Central Sales Tax Act,1956 |
Assessed Dues |
1,202,194 | 2001- 2002 |
Registrar Maharashtra Sales Tax Tribunal, Mumbai |
Bombay Sales Tax Act,1959 |
Assessed > Dues |
949,067 | 2002- 2003 |
Deputy Commissioner of Sales Tax(Appeal), Nagpur |
Central Sales Tax Act,1956 |
Assessed Dues |
390,538 | 2002- 2003 |
Deputy Commissioner of Sales Tax(Appeal), Nagpur |
Central Sales Tax Act,1956 |
Assessed Dues |
62,70,042 | 2007- 2008 |
Maharashtra Sales Tax Tribunal, Nagpur |
Income Tax Act, 1961 |
Assessed Dues |
8,10,246 | 2001- 2002 |
Income Tax Appellate Tribunal, Kolkata |
Income Tax Act, 1961 |
Assessed Dues |
45,63,361 (Net of Advance Tax} |
2003- 2004 |
income Tax Appellate Tribunal, Kolkata |
Others |
2,37,060 | |||
Total |
2,50,12,739 |
viii. As per the Information and explanation given to us 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 (43 of 1961) as income during the year. Hence comment on
Paragraph 3(viii) of the said Order does notarise.
ix. (a) As per information and explanation given to us the company has not defaulted in repayment of
loans or other borrowings or in the payment of interest thereon to any lender except
deferred sales
tax loan which Is not moved since a long period.
(b) . The company is not declared as wilful defaulter by any bank, or financial
institution or lender.
Hence reporting under clause 3(ix)(b) of the Order is not applicable.
(c) The term loans taken by the company were applied for the purpose for wh^be~"ta3n5 were
obtained. Hence reporting under clause 3{ix)(c) of the Order is not applicahi^ . .T
(d) The company has not raised any funds on short term basis during the year. Wncyreportcngunder
clause 3{ix)(d) of the Order is not applicable. ^
(e) The company has not taken any funds from any entity or person on account of or to
meet the
obligations of its subsidiary or associates during the year. Hence reporting under 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
subsidiary or associate companies.
x. (a)According to information and explanation given to us the Company has not raised
any money by way
of initial public offer or further public offer {including debt instruments) during the
year. Hence
reporting under clause 3(x)(a) of the Order is not applicable.
(b)According to information and explanation given to us, the Company has not made any
preferential
allotment or private placement of shares or convertible debentures {fully, partially or
optionally
convertible) during the year. Hence reporting under clause 3{x)(b) of the Order is not
applicable.
xi. (a) According to the information and explanations given by the management, we report that no fraud
by the Company or on the Company by the officers and employees of the Company has been
noticed or reported during the year.
(b) No report under sub-section (12) of section 143 of the Companies Act 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, during the year.
(c) No whistle blower complaints has been received by the company during the year (and
upto the date
of this report), hence comment under the said clause does notarise.
xii. The Company is not a Nidhi company. Therefore, reporting under clause 3(xli] of the Order is not
applicable.
xiii. According to the information and explanations given to us and based on our
examination of the
records of the Company, all the transactions with the related parties are in compliance
with Sections
177 and 188 of the Companies Act, 2013, where applicable and such transactions have been
disclosed
in the Standalone !nd AS Financial Statements as required by the applicable Indian
Accounting
Standards.
xiv. (a) in our opinion the Company has an adequate internal audit system commensurate with the size and
the nature of its business.
[b) We have considered, the internal audit reports for the year under audit, issued to
the Company
during the year and till date, in determining the nature, timing and extent of our audit
procedures.
xv. To the best of our knowledge and belief and as per the information and explanations
given to us, the
Company has not entered into any non-cash transaction with directors or persons connected
with him.
So, comment on clause 3(xv) of the said Order does not arise.
xvi. (a) The Company is not required to obtain registration under section 45-iA of of
India
Act, 1934 (2 of 1934). He nee, reporting on clause 3{xvi) {a)of the Order is not
abjj&eable.
(b)The company has not conducted any Non-Banking Financial or Housing
Firia^fe-ad;ivitiesJ;dt))-ing the
year. Hence, reporting on clause 3{xvi) (b)of the Order is not applicable. /-?*}!!
(c) The company Is not a Core Investment Company (CIC) as defined in the regulations
made by the
Reserve Bank of India. Hence, reporting on clause 3(xvi} (c)of the Order is not
applicable.
(d) According to the information and explanations given by the management, the company
has not
more than one CIC in the group. Hence, reporting on clause 3(xvi) (d)of the Order is not
applicable.
xvii. The company has not incurred cash losses in the financial year covered by our
audit and in the
immediately preceding financial year. Hence, comment on clause 3{xvii) of the Order does
notarise,
xviii. There has been no resignation of statutory auditors of the company during the
year. Hence, comment
on clause 3(viii) of the Order does not arise.
xix. On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and
payment of financial liabilities, other information accompanying the financial
statements, our
knowledge of the Board of Directors and management plans, we are of the opinion that no
material
uncertainty exists as on the date ofthe audit report that company is 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 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.
xx. As the criteria mentioned in section 135 of the Companies Act, 2.013 are below the threshold limit
Hence, compliance of section 135 ofthe Companies Act, 2013 is not applicable to the company.
ANNEXURE B TO THE INDEPENDENT AUDITORS REPORT
Report on the Internal Financial Controls tinder Clause (I) of
Sub-section 3 of Section 143 of the Companies
Act, 2013 ("the Act").
{Referred to Paragraph 2(f) of Report on Other Legal and Regulatory Requirements of our
Report of even
date).
We have audited the internal financial controls over financial reporting of HINDUSTHAN
UDYOG LIMITED ("the
Company") as of 31st March, 2025 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 with reference to these standalone ind AS
financial statements
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 {ICA1). 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.
AuditorsResponsibility *
Our responsibility is to express an pptnion on the Companys internal financial
controls over financial reporting
with reference to these standalone ind AS financial statements 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 Note1) and the Standards on Auditing prescribed under section
143(3,0) of the Companies Act, 2013,
to the extent applicable to an audit of internal financial controls with reference to
Standalone Financial
Statements, 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 with
reference to
Standalone Ind AS Financial Statements was established and maintained and if such controls
operated
effectively in ail material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of
the Internal financial
controls system over financial reporting with reference to Standalone tnd AS Financial
Statements and their
operating effectiveness. Our audit of internal financial controls over financial reporting
with reference to
Standalone Ind AS Financial Statements included obtaining an understanding of internal
financial controls over
financial reporting with reference to Standalone Ind AS Financial Statements, 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 tnd AS Financial Statements, whether due to
fraudr.ey;eiG^i
We believe that the audit evidence we have obtained is sufficient and
approptfta&Fftt} providq^jbasls for our
audit opinion on the Companys Internal financial controls over financial
repq&jn]gQfritffVfefeffpce to these,
standalone Ind AS financial statements. , ^
Meaning of internat Financial Controis over Financial Reporting with reference to these
standalone Ind AS
financial statements
A companys internal financial control over financial reporting with reference to these
standalone Ind AS
financial statements 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 with reference to
these standalone Ind AS financial statements 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 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 companys assets that could have a material effect on the financial
statements.
Inherent Limitations of Interna) Financial Controls over Financial Reporting with
reference to these standalone
Ind AS financial statements
Because of the inherent limitations of Internal financial controls over financial
reporting with reference to these
standalone Ind AS financial statements, 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 with reference to
these standalone Ind AS
financial statements to future periods are subject to the risk that the internal financial
control over financial
reporting with reference to these standalone Ind A5 financial statements 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 with reference to these standalone Ind AS financial statements and
such internal financial
controls over financial reporting with reference to these standalone Ind AS
financial statements were operating
effectively as at 31st March 2025, 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 Safarpurla & Partners |
Chartered Accountant |
Firm ICAi Reg. No. 302113E |
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