We have audited the accompanying financial statements of HINDUST AN
EVEREST TOOLS . LIMITED (the Company), which comprise the Balance
Sheet as at 31 st March, 2015, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended and a summary of the
significant accounting policies and other explanatory information
(hereinafter referred to as the financial statements)
Management''s Responsibility for the Financial Statements
The Company''s 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 financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding 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, imple- mentation
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
statements that give a true and fair view and are free from material
mis- statement, whether due to fraud or error .
ur responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company''s
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appro- priate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate inter- nal financial
control system over financial reporting and the operating effectiveness
of such controls. An audit also includes evaluating the appropriateness
of the accounting policies used and the reasonableness of the
accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the finan- cial
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Companies Act, 2013 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 31 March, 2015 and its Loss and its cash
flows for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
a. Trade Receivables and Trade payables are subject to reconciliation
and confirmations. Adjustments in carrying amount, if any, shall be
made on completion of reconciliation and confirmation thereof. In the
opinion of the management, there shall not be any material impact on
carrying amount of these accounts. (Refer note 28.2 to the financial
b. Inventories except work-in-progress have not been physically
verified during the year and same has been considered as per quantity
appearing in the books of accounts .Adjustments for variances, if any,
shall be made on completion of physical verification ofthe inventories
In the opinion of the management there shall not be any material impact
on carrying value of inventories. (Refer note 13 to the financial
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 (''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 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 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 exami- nation of
(c) The Balance Sheet, the Statement of Profit and Loss, 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 financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies(Accounts) Rules, 2013.
(e) Pending reconciliation and confirmation of Trade Receivables and
Trade Payables and consideration of inventories as per quan- tity
appearing in books of account as described in sub- paragraph (a) and
(b) under the emphasis of matters paragraph above, in our opinion,
shall have no adverse effect on the functioning of the Company.
(f) On the basis of the written representations received from the
directors as on 31 st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 st March,
2015 from being appointed as a director in terms of Section 164 (2) of
(g) With respect to the other matters to be included in the Auditor''s
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 no pending litigation having material impact on its
ii. There is no long term contract including derivative contract having
material foreseeable losses.
iii. There is no amount required to be transferred to the Investor
Education and Protection Fund by the Company.
Annexure referred to in paragraph 1 of our report of even date on the
other legal and regulatory requirements (Re: HINDU- STAN EVEREST TOOLS
(i) a. The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets ,however same is under updation.
b. Fixed Assets of the Company have not been physically verified by the
management during the year. In our opinion, the frequency of physical
verification is need to be on yearly basis having regard to the size of
the Company and nature of its assets.
(ii) a. Inventories except work in progress were not physically
verified during the year.
b. In our opinion, the procedures of physical verification of
inventories are not reasonable and adequate in relation to the size of
the company and the nature of its business as the company has not
conducted any physical verification of inventories except work in
progress during the year .
c. In our opinion and according to the information and explanation
given to us, the Company is maintaining proper records of inventory.
(iii) The Company has not granted any loan to companies, firms or other
parties covered in the register maintained under Section 189 of the
Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system com-
mensurate with the size of the Company and the nature of its business,
for the purchase of inventories and fixed assets and sale of goods .
During the course of our audit, we have not observed any major weakness
or continuing failure to correct any major weakness in the internal
control system of the Company in respect of these areas except
strengthening the procedure of the physical verification of inventories
and fixed assets at regular intervals.
(v) The Company has not accepted any deposit from the public. Therefore
clause 3(v) of the Order is not applicable.
(vi) The Central Government has not prescribed maintenance of cost
records u/s 148(1) of the Companies Act, 2013.
(vii) a. According to the records of the Company, the Company is
generally regular in depositing undisputed statutory dues including
provident fund, employees'' state insurance ,income tax .sales tax,
wealth tax, service tax, duty of customs, duty of ex- cise ,value added
tax. cess and any other statutory dues accrued in the books of accounts
, with the appropriate authorities though there have been some delays.
There was no undisputed outstanding statutory dues as at the year-end
for a period of more than six months from the date they became payable.
b. According to the records of the Company, there are no dues
outstanding of income tax , sales tax, wealth tax, duty of cus- toms,
duty of excise, value added tax, service tax and cess on account of any
c. There is no amount required to be transferred to investor education
and protection fund in accordance with the relevant provisions of the
Companies Act ,1956 (1 of 1956) and rules made there under..
(viii) The Company has accumulated losses at the end of the financial
year less than fifty percent of its net worth and it has incurred cash
loss in the current financial year, but not in immediately preceding
(ix) According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to banks and it has no
dues payable to financial institutions and debenture holders
(x) 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.
(xi) According to the information and explanations given to us, the
company has not obtained any term loan during the year.
(xii) Based on our examination of the books and records of the Company,
carried out in accordance with the generally accepted au- diting
practice in India and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
FOR SINGHI & CO.
Firm Reg. No. 302049E
Membership No. 088926
Place :New Delhi
Date: 3rd June, 2015