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HB Stockholdings Ltd.

BSE: 532216 Sector: Financials
NSE: HBSTOCK ISIN Code: INE550B01014
BSE LIVE 12:51 | 24 Nov 36.85 1.75
(4.99%)
OPEN

36.70

HIGH

36.85

LOW

36.70

NSE 13:05 | 24 Nov 36.60 1.70
(4.87%)
OPEN

36.60

HIGH

36.60

LOW

36.60

OPEN 36.70
PREVIOUS CLOSE 35.10
VOLUME 36728
52-Week high 45.90
52-Week low 12.72
P/E 6.03
Mkt Cap.(Rs cr) 88
Buy Price 36.85
Buy Qty 52081.00
Sell Price 0.00
Sell Qty 0.00
OPEN 36.70
CLOSE 35.10
VOLUME 36728
52-Week high 45.90
52-Week low 12.72
P/E 6.03
Mkt Cap.(Rs cr) 88
Buy Price 36.85
Buy Qty 52081.00
Sell Price 0.00
Sell Qty 0.00

HB Stockholdings Ltd. (HBSTOCK) - Auditors Report

Company auditors report

TO THE MEMBERS OF

HB STOCKHOLDINGS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of HB STOCKHOLDINGSLIMITED ("the Company") which comprise the Balance Sheet as at March 312016 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone 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 standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2016 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inthe paragraph 3 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on 31March 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 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 31 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.

For P. BHOLUSARIA & CO.
Chartered Accountants
FRN : 000468N
Place : Gurgaon (AMIT GOEL)
Dated : 28th May 2016 PARTNER
(Membership No. 092648)

Annexure – A to the Auditors’ Report

The annexure referred to in Independent Auditor’s Report to the members of thecompany on the standalone financial statements for the year ended on 31stMarch2016 We Report that:

1. a. The Company has maintained proper records showing full particulars includingquantitative 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. As explained to us inventories (Investments) have been physically verified by themanagement at reasonable intervals during the year. As explained to us the discrepanciesnoticed on physical verification of inventory as compared to the book records were notmaterial.

3. a. As explained to us the Company has not granted any loans secured or unsecuredto Comapnies firms Limited Liability Partnership or other parties covered in theregister maintained under Section 189 of the 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 explanation 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 ofCost Records 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 includingProvident Fund Employees’ State Insurance Income Tax Sales-Tax Service TaxCustoms Duty Excise Duty Value added tax Cess and other statutory dues to the extentand as applicable to the company have been generally regularly deposited by the companyduring 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 2016 for a period of more than six months from the dateof becoming payable.

b. The disputed statutory dues aggregating to Rs. 7932954/- that have not beendeposited on account of matters pending before appropriate authorities are as under:

Sr. No. Name of the statute A.Y. Nature of the Dues Forum where Dispute is pending Amount (Rs.)
1. Income Tax Act 1961 2001-02 Income Tax Commissioner of Income Tax (Appeal) 3855091/-
2. Income Tax Act 1961 2007-08 Income Tax Commissioner of Income Tax (Appeal) 1859100/-
3. Income Tax Act 1961 2008-09 Income Tax Assessing officer 173453/-
4. Income Tax Act 1961 2010-11 Income Tax Commissioner of Income Tax (Appeal) 1026830/-
5. Income Tax Act 1961 2011-12 Income Tax Commissioner of Income Tax (Appeal) 749990/-
6. Income Tax Act 1961 2013-14 Income Tax Commissioner of Income Tax (Appeal) 268490/-
TOTAL 7932954/-

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 nofraud by the company or on the Company by its officers or employees has been noticed orreported 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 paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V of the Act.

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
FRN : 000468N
Place : Gurgaon (AMIT GOEL)
Dated : 28th May 2016 PARTNER
(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 HBStockholdings Limited ("the Company") as of 31 March 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 safeguardingof its 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 judgment 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance 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 31 March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For P. BHOLUSARIA & CO.
Chartered Accountants
FRN : 000468N
Place : Gurgaon (AMIT GOEL)
Dated : 28th May 2016 PARTNER
(Membership No. 092648)