Adverse Report.docx - Annual R eport 2018-2019 INDEPENDENT...

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AnnualReport2018-2019INDEPENDENT AUDITOR’S REPORTToThe Members ofHMT Bearings Limited,Moulali, Hyderabad(CIN: U29130TG1964FLC001023)REPORT ON THE FINANCIAL STATEMENTSAdverse OpinionWe have audited the accompanying financialstatements of HMT BEARINGS LIMITED whichcomprise the balance sheet as at March 31, 2019, thestatement of profit and Loss, statement of changes inequity) and the statement of cash flows for the yearthen ended, and notes to the financial statements,including a summary of significant accounting policies(hereinafter referred to as the “financial statements”).In our opinion and to the best of our information andaccording to the explanations given to us, because ofthe significance of the matter discussed in the Basis forAdverse Opinion section of our report, theaccompanying financial statements do not give a trueand fair view in conformity with the accountingprinciples generally accepted in India, of the state ofaffairs of the Company, as at March 31, 2019, of itsprofit/loss, (position of changes in equity) and the cashflows for the year then ended.Basis for Adverse OpinionOur adverse opinion is based on the followingobservations:a.Though the Company is under closure as reportedin Material Uncertainty Related to Going Concernsection, the final accounts have been prepared bythe Company on a Going Concern basis which is amajor deviation from Ind AS 1.b.In terms of letter dated 13thJanuary, 2016received from the Government of India, Ministryof Heavy Industries and Public Enterprises, theCompany failed to transfer the entire proceedsof sale of immovable property to GOI and also,in terms of subsequent letter dated 13th January,2017, failed to write off the GOI loan. The saidnoncompliance has resulted in under stating ofthe Other Equity of the company by Rs.83, 03,29,260/ -and over stating of Other FinancialLiabilities by Rs.83, 03, 29,260/-.c.The Company has neither made any provision forexpected credit loss nor has obtained confirmationletters from the Sundry Debtors whose balances areoutstanding for more than one year and, they havebeen classified as current assets.The Company isdoubt full of recovery of said debts.d.The balances in the Trade payables accounts werecarried forward from previous year and shown undercurrent liabilities. The Company has no records/confirmation letters relating to the same which candetermine whether they are payable or not.e.The balances in theAdvance accounts were carriedforward from previous year and shown undercurrentassets/current liabilities. The Company has norecords/confirmation letters relating to the samewhich can determine whether they arereceivable/payable or not.f.The Company has not disclosed additionalinformation relating to Amounts due to creditorsunder the MSMECATEGORY.
AnnualReport2018-2019We conducted our audit in accordance with theStandards on Auditing (SAs) specified under section143(10) of the Companies Act, 2013. Our responsibilitiesunder those Standards are further described in the

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