INDEPENDENT AUDITOR'S REPORT
TO
THE MEMBERS OF HI-TECH PIPES LIMITED
Report on the audit of Consolidated Financial
Statements
OPINION
We have audited the accompanying consolidated
financial statements of HI-TECH PIPES LIMITED
(hereinafter referred to as "the Parent”) and its
subsidiaries (the Parent and its subsidiaries together
referred to as "the Group”),which includes Group's
share of profit/ loss, comprising the Consolidated
Balance Sheet as at 31st March, 2023, the
Consolidated Statement of Profit and Loss (including
other comprehensive income), the Consolidated
Statement of Changes in Equity, Consolidated 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 consolidated financial statement, and details
of subsidiaries as follows:-
a) HTL Metal Private Limited,
b) HTL Ispat Private Limited,
c) Hitech Metalex Private Limited
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 and on
the other financial information of the subsidiaries,
the aforesaid consolidated 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 the Companies ( Indian Accounting
Standards) Rules, 2015 as amended ( "Ind AS”) and
other accounting principles generally accepted
in India, of the consolidated state of affairs of the
Group as at March 31,2023, their consolidated profit
including other comprehensive income, consolidated
changes in equity and their consolidated cash flows
for the year ended on that date.
BASIS FOR OPINION
We conducted our audit in accordance with the
Standards on Auditing (SAs) specified under section
143(10) of the Act. Our responsibilities under those
Standards are further described in the Auditor's
Responsibilities for the Audit of the Consolidated
Financial Statements section of our report. We are
independent of the Group 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 consolidated financial statements under the
provisions of the Act and Rules 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 opinion on consolidated 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 consolidated financial statements of
the current period. These matters were addressed in
the context of our audit of the consolidated 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:-
Information Other than the Consolidated Financial
Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for
the preparation of the other information. The other
information comprises the information included in
the Parent company's annual report, but does not
include the consolidated financial statements and
our auditors' report thereon.
Our opinion on the consolidated financial statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated
financial statements, our responsibility is to read the
other information and, in doing so, consider whether
the other information is materially inconsistent
with the consolidated 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 MANAGMENT FOR THECONSOLIDATED FINANCIAL STATEMENTS
The Parent's Board of Directors is responsible for
matters stated in section 134(5) of the Act with
regards to the preparation of these consolidated
financial statements in terms of the requirements
of the Companies Act, 2013 (hereinafter referred
to as "the Act”) that give a true and fair view of the
consolidated financial position, consolidated financial
performance including other comprehensive income,
consolidated statement of changes in equity and
consolidated cash flows of the Group in accordance
with the Indian Accounting Standards (Ind AS)
prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards)
Rules, 2015, as amended, and other accounting
principles generally accepted in India. The respective
Board of Directors of the companies included in the
Group are responsible for maintenance of adequate
accounting records in accordance with the provisions
of the Act for safeguarding the assets of the Group
and for preventing and detecting frauds and other
irregularities; the selection and application of
appropriate accounting policies; making judgments
and estimates that are reasonable and prudent;
and the 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 consolidated
financial statements that give a true and fair view and
are free from material misstatement, whether due to
fraud or error, which have been used for the purpose of
preparation of the consolidated financial statements
by the Directors of the Parent, as aforesaid.
In preparing the Consolidated Financial Statements,
the respective Board of Directors of the companies
included in the Group are responsible for assessing
the ability of the Group to continue as a going
concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of
accounting unless the Management either intends
to liquidate or to cease operations, or has no realistic
alternative but to do so.
The respective Board of Directors of the companies
included in the Group is also responsible for overseeing
the financial reporting process of the Group.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF
THE CONSOLIDATED FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance
about whether the consolidated financial statements
as a whole are free from material misstatement,
whether due to fraud or error, and to issue an
auditor's 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 consolidated 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 consolidated 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.
Ý Obtain an understanding of internal financial
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 Parent Company and its
subsidiaries, which are companies incorporated
in India, have adequate internal financial controls
with reference to financial statements in place
and the operating effectiveness of such controls.
Ý Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by management.
Ý Conclude on the appropriateness of
management's 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 ability of the Group to
continue as a going concern. If we conclude that
a material uncertainty exists, we are required
to draw attention in our auditor's report to the
related disclosures in the consolidated 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 auditor's report. However, future events
or conditions may cause the Group to cease to
continue as a going concern.
Ý Evaluate the overall presentation, structure and
content of the consolidated financial statements,
including the disclosures, and whether the
consolidated financial statements represent the
underlying transactions and events in a manner
that achieves fair presentation.
Ý Obtain sufficient appropriate audit evidence
regarding the financial information of the
entities or business activities within the Group to
express an opinion on the consolidated financial
statements. We are responsible for the direction,
supervision and performance of the audit of the
financial statements of such entities included in
the consolidated financial statements; we remain
solely responsible for our audit opinion.
Materiality is the magnitude of misstatements in the
consolidated financial statements that, individually or
in aggregate, makes it probable that the economic
decisions of a reasonably knowledgeable user of the
consolidated 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 consolidated financial statements
We believe that audit evidence obtained by us are
sufficient and appropriate to provide a basis for
our audit opinion on the consolidated financial
statements.
We communicate with those charged with governance
of the Parent Company and such other entities
included in the consolidated financial statements of
which we are the independent auditors 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
consolidated financial statements of the current
period and are therefore the key audit matters. We
describe these matters in our auditor's 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, based on
our audit we report, to the extent applicable, 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 of the
aforesaid consolidated financial statements.
(b) In our opinion, proper books of account as
required by law relating to preparation of the
aforesaid consolidated financial statements
have been kept so far as it appears from our
examination of those books, returns and the
reports of the other auditors.
(c) The Consolidated Balance Sheet, the
Consolidated Statement of Profit and Loss
(including Other Comprehensive Income),
Consolidated Statement of Changes in
Equity, and the Consolidated Cash Flow
Statement dealt with by this Report are in
agreement with the relevant books of account
maintained for the purpose of preparation of
the consolidated financial statements.
(d) In our opinion, the aforesaid consolidated
financial statements comply with the Indian
Accounting Standards prescribed under
Section 133 of the Act.
(e) On the basis of the written representations
received from the directors of the Parent
as on 31st March, 2023 taken on record by
the Board of Directors of the Parent, none
of the directors of the Group companies,
incorporated in India is disqualified as on
31st March 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 and
the operating effectiveness of such controls;
refer to our separate Report in "Annexure
A”, which is based on the auditors' reports
of the Parent, subsidiary companies. Our
report expresses an unmodified opinion on
the adequacy and operating effectiveness
of internal financial controls over financial
reporting of those companies, for the reasons
stated therein.
(g) With respect to other matter to be included
in the Auditor's Report in accordance with
the requirements of section 197(16) of the
Act, as amended:
In our opinion and to the best of our information
and according to the explanations given to us,
the remuneration paid/provided by the parent
company to its directors during the year is in
accordance with the provisions of Section 197 of
the Act;
(h) With respect to the other matters to be included
in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditor's) Rules,
2014, as amended, in our opinion and to the
best of our information and according to the
explanations given to us:
i. The consolidated financial statements of
the company have disclosed the impact
of pending litigations on its consolidated
financial position in its consolidated financial
statements.
ii. The Group did not have any long term
contracts include derivative contracts. Hence
the question of any foreseeable losses does
no arise.
iii. There were no amounts which were required
to be transferred to the Investor Education
and Protection Fund by the Parent and its
subsidiary companies incorporated in India.
iv. (a) The respective Managements of the
Company and its subsidiary which are
companies incorporated in India, whose
financial statements have been audited
under the Act, have represented to
us, to the best of their knowledge and
belief, other than as disclosed in the
notes to the accounts, 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 Parent
or any of such subsidiary to or in any
other person(s) or entity(ies), including
foreign entities ("Intermediaries”), with
the understanding, whether recorded in
writing or otherwise, that the Intermediary
shall, directly or indirectly lend or invest in
any other persons or entities identified in
any manner whatsoever by or on behalf
of the Parent or any of such subsidiaries
("Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
b. The respective Managements of the
Parent and its subsidiary which are
companies incorporated in India, whose
financial statements have been audited
under the Act, have represented to
us, to the best of their knowledge and
belief, other than as disclosed in the
notes to accounts, no funds (which are
material either individually or in the
aggregate) have been received by the
Parent or any of such subsidiary from
any person(s) or entity(ies), including
foreign entities ("Funding Parties”), with
the understanding, whether recorded in
writing or otherwise, that the Parent or
any of such subsidiary shall, directly or
indirectly, lend or invest in other persons
or entities identified in any 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.
c. Based on the audit procedures that
has been considered reasonable and
appropriate in the circumstances
performed by us nothing has come to our
or other auditor's 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 board of directors of Hi-Tech Pipes Ltd has
proposed final dividend for the year which is
subject to the approval of the members at
the annual general meeting. The amount of
dividend declared is in accordance with the
section 123 of the Act to the extent it applies
to declaration of dividend.
2. With respect to the matters specified in paragraphs
3(xxi) and 4 of the Companies (Auditor's Report)
Order, 2020 (the "Order”/ "CARO”) issued by the
Central Government in terms of Section 143(11)
of the Act, to be included in the Auditor's report,
according to the information and explanations
given to us, and based on the CARO reports
issued by us for the Company and its subsidiaries
included in the consolidated financial statements
of the Company, to which reporting under
CARO is applicable, we report that there are no
qualifications or adverse remarks in these CARO
reports.
For A. N.GARG & COMPANY
Chartered Accountants
FRN- 004616N
A. N. GARG
(FCA, Partner)
(M.No.-083687)
Place: New Delhi
Date: 27th May, 2023
UDIN: 23083687BGXHQO2527
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