1. We have audited the attached Balance Sheet of Hindustan Tin Works
Limited, as at 31st March, 2012 and the Profit and Loss Account and
Cash Flow Statement of the company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the company''s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence, supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
3. As required by the Companies (Auditor''s Report) Order, 2003 as
amended by the Companies (Auditor''s Report) Order, 2004 issued by the
Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the annexure, a statement on the
matters specified in paragraphs 4 and 5 of the said order.
Further to our comments in the annexure referred to in paragraph 3
above, we report that:-
a. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
b. In our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of the
books of the Company.
c. The Balance Sheet and Profit and Loss Account and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d. Based on the representations received from the Directors and
information & explanations made available, we report that none of
directors are disqualified as on 31st March, 2012 from being appointed
as a Director in terms of Clause (g) of Sub-Section (1) of Section 274
of the Companies Act, 1956.
e. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow Statement comply with the accounting standards referred to in
Sub-Section (3C) of Section 211 of the Companies Act, 1956.
f. In our opinion and to the best of our information and according to
the explanation given to us, the accounts read together with other
noted thereon give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with the accounting principles generally accepted in India.
i) In the case of Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012.
ii. In the case of Profit and Loss Account of the Profit for the year
ended on that date.
iii. In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
ANNEXURE TO THE AUDITORS'' REPORT (REFERRED TO IN PARAGRAPH 3 OF OUR
REPORT OF EVEN DATE) TO THE SHAREHOLDERS OF HINDUSTAN TIN WORKS LIMITED
We report that:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) We are informed that major parts of the fixed assets were
physically verified at reasonable intervals. No material discrepancies
were noticed on such verification
(c) In our opinion and according to the information and explanations
given to us substantial part of fixed assets has not been disposed off
by the company.
2. (a) The management has conducted physical verification of inventory
at reasonable intervals during the year.
(b) The procedures of physical verification of inventory followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory and no
material discrepancies were noticed on physical verification.
3. (a) The Company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Therefore clauses b, c, &
d are not applicable.
e) The company has taken loan from the company covered in the register
maintained under section 301 of the Companies Act, 1956, the maximum
amount involved during the year was Rs. 44.62 lacs and the year end
balance of loan taken from such party was Nil.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions for
such loan are not prima facie prejudicial to the interest of the
g) The loan taken is repayable on demand. As informed, the company has
repaid the balance outstanding of such loan, thus, there has been no
default on the part of the company.
h) There is no overdue amount of loan taken from the companies, firms
or other parties listed in the register maintained under section 301 of
the Companies Act 1956.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, no major weakness has been
noticed in the internal control system in respect of these areas.
5. (a) The particulars of contracts or arrangements referred to in
section 301 of the Act have been entered in the register required to be
maintained under that section , and
(b) Transactions made in pursuance of such contracts or arrangements
have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
6. The Company has not accepted any deposits from the public within
the meaning of section 58(A). 58AA or any other relevant provisions of
the Companies Act, 1956 and the rules framed there under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly review the books of accounts maintained by company
pursuant to the rules prescribed by the Central Government for the
maintenance of cost records under section 209 (1)(d) of the Act and are
of the opinion that prima facia, the prescribed accounts and records
have been made and maintained. However we have not made a detailed
examination of the records
9. (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Investor education and protection fund, employees'' state insurance,
income-tax, sales-tax, wealth-tax, service tax, customs duty, excise
duty, cess and other material statutory dues applicable to it.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, employees''
state insurance, income-tax, wealth-tax, service tax, sales- tax,
customs duty, cess and other undisputed statutory dues were outstanding
as at 31.03.2012, for a period of more than six months from the date
they became payable.
(b) As regards dues not deposited on account of disputes, the position
as explained by the Company is as under:
Particulars Period to which Demand
the amount Raised
Income Tax 2008-09 14,49,744
Income Tax 2009-10 29,59,928
Excise 1995-96 1,32,000
Income Tax CIT Appeal has deleted the ITAT
demand of Rs. 5,66,804/- and the
department is in appeal before ITAT
and the Company is also in appeal
before ITAT against the demand of Rs.
Income Tax The appeal is also pending before CIT(A)
the Commissioner of Income Tax
Excise Remanded back by CESTAT Commissione
to Commissioner Appeals. Appeals.
Company has deposited Rs.60,000
against the demand.
(10) The company has no accumulated losses at the end of the financial
(11) Based on our audit procedures and as per the information and
explanations given by the management, the Company has not defaulted in
repayment of dues to financial institutions and banks. The company has
not issued any debentures during the year
(12) According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
(13) The Company is not a chit fund, nidhi, mutual benefits fund or a
society, accordingly, clause 4(xiii) of the order not applicable.
(14) The company is not regularly dealing in shares and there is no
transaction of trading in shares during the year. Proper records have
been maintained and timely entries have been made for the shares
already held by company. Shares have been held by the company in its
(15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
(16) In our opinion and according to the information and explanations
given to us by the management, term loans are applied for the purpose
for which the loans were obtained.
(17) 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 raised on short-term basis have been used for long-term
(18) The Company has not made any preferential allotment of shares to
parties or companies covered in the register maintained under section
301 of the Companies Act, 1956.
(19) The company has not issued any debenture during the year.
(20) The company has not raised any money by public issue during the
(21) Based on the audit procedures performed and the representation
obtained from the management, we report that no fraud on or by the
company has been noticed or reported during the year under audit.
For M.L. Puri & Co.
FRN No. 002312N
Place : Delhi M. L. Puri
Date : 9th August, 2012 Partner
M. No. 9198