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HB Leasing & Finance Co Ltd.

BSE: 508956 Sector: Financials
NSE: N.A. ISIN Code: INE549B01016
BSE 00:00 | 26 Apr 2.10 0
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2.11

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NSE 05:30 | 01 Jan HB Leasing & Finance Co Ltd
OPEN 2.11
PREVIOUS CLOSE 2.10
VOLUME 200
52-Week high 3.99
52-Week low 1.27
P/E 10.50
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.11
CLOSE 2.10
VOLUME 200
52-Week high 3.99
52-Week low 1.27
P/E 10.50
Mkt Cap.(Rs cr) 2
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

HB Leasing & Finance Co Ltd. (HBLEASINGFIN) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF

HB LEASING AND FINANCE COMPANY LIMITED Report on the Financial Statements

We have audited the accompanying Financial Statements of HB LEASING AND FINANCECOMPANY LIMITED ("the Company") which comprises the Balance Sheet as atMarch 31 2017 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31March 2017 and its profit and its cash flows for the year ended on that date. Reporton Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in the paragraph3 and 4 of the Order.

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 bestof 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 theCompany so far as it appears from our examination of those books;

(c) the Balance sheet the Statement of profit and loss and the Cash flow statementdealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act;

(f) with respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

(g) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements - Refer Note 26 to the financial statements;

ii. the Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016 and these are in accordance with thebooks of accounts maintained by the Company (Refer Note 28 to the financial statements.)

For P. BHOLUSARIA & CO.
Chartered Accountants
Firm Registration No.: 000468N
Sd/-
(AMIT GOEL)
PLACE : GURUGRAM PARTNER
DATE : 26.05.2017 (Membership No. 092648)

Annexure - A to the Auditors' Report

The annexure referred to in Independent Auditor's Report to the members of the companyon the financial statements for the year ended on 31st March2017 We Report that:

1. a. The Company has maintained proper records showing full particulars

including quantitative details and situation of fixed assets.

b. As explained to us the management during the year has physically verified the fixedassets in a phased periodical manner which in our opinion is reasonable having regard tothe size of the company and nature of its assets. No material discrepancies were noticedon such physical verification

c. The Company does not have any immovable property.

2. a. As explained to us inventories have been physically verified by the

management at reasonable intervals during the year. As explained to us thediscrepancies noticed on physical verification of inventory as compared to the bookrecords were not material.

3. As explained to us the company has not granted any loans secured or unsecured tocompanies firms or other parties covered in the register maintained under section 189 ofthe Companies Act 2013.

4. In our opinion and according to the information and explanations given to us thecompany has complied with the provision of section 185 and 186 of the Act with respect tothe loans and investment made. As per the information and explanations given to us theCompany has not given any guarantee or provided any security in connection with a loan toany other body corporate or person.

5. The Company has not accepted any deposits from the public.

6. The nature of the company's business/activities is such that maintenance of CostRecords under section 148(1) of the Act is not applicable to the company.

7. a. According to the records of the Company undisputed statutory dues

including Provident Fund Employees' State Insurance Income Tax Sales-Tax ServiceTax Customs Duty Excise Duty Value added Tax Cess and other statutory dues to theextent and as applicable to the company have been generally regularly deposited by thecompany during the year with the appropriate authorities. According to the information andexplanations given to us no undisputed amounts payable in respect of the aforesaid dueswere outstanding as at 31st March 2017 for a period of more than six months from the dateof becoming payable. b. The disputed statutory dues aggregating to Rs. 416250462/- thathave not been deposited on account of matters pending before appropriate authorities areas under :

Sr. No Name of the statute Nature of the Dues Period (A.Y.) Forum where Dispute is pending Amount ( Rs. )
1. Income Tax Act 1961 Income Tax 2009-10 Income Tax Appellate Tribunal Delhi 83526253/-
2. Income Tax Act 1961 Income Tax 2010-11 Assessing officer (For giving appeal effect) 3961670/-
3. Income Tax Act 1961 Penalty (Income Tax) 2009-10 Income Tax Appellate Tribunal 18028208/-
4. Income Tax Act 1961 Income Tax Block Period 01/04/1987 to 07/08/1997 Commissioner of Income Tax (Appeal) 310734331/-
TOTAL 416250462/-

8. The Company does not have any loans or borrowings from any financial institutionbanks government or debenture holders during the year. Accordingly paragraph 3(viii) ofthe Order is not applicable.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3(ix) of the order is not applicable.

10. In our opinion and according to the information and explanation given to us nomaterial fraud by the company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

11. According to the information and explanations given to us and based on ourexamination of the record of the Company the Company has not paid/ provided anymanagerial remuneration during the year.

12. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the order is notapplicable.

13. According to the information and explanations given to us and based on orexaminations of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransaction have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and based on ourexamination of the record of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15. According to the information and explanations given to us and based on ourexamination of the record of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.

16. The Company is required to be registered under section 45-IA of the Reserve bank ofIndia Act 1934 and such registration has been obtained by the Company.

For P. BHOLUSARIA & CO.
Chartered Accountants
Firm Registration No.: 000468N
Sd/-
(AMIT GOEL)
PLACE : GURUGRAM PARTNER
DATE : 26.05.2017 (Membership No. 092648)

Annexure - B to the Auditors' Report

Report on the Internal Financial Control under clause (i) of sub section 3 of section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of HB Leasingand Finance Company Limited ("the Company") as of 31 March 2017 in conjunctionwith our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements. InherentLimitations of Internal Financial Controls Over Financial Reporting Because of theinherent limitations of internal financial controls over financial reporting includingthe possibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting to futureperiods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For P. BHOLUSARIA & CO.
Chartered Accountants
Firm Registration No.: 000468N
Sd/-
(AMIT GOEL)
PLACE : GURUGRAM PARTNER
DATE : 26.05.2017 (Membership No. 092648)