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HOV Services Ltd.

BSE: 532761 Sector: IT
NSE: HOVS ISIN Code: INE596H01014
BSE LIVE 15:57 | 14 Dec 370.20 14.25
(4.00%)
OPEN

358.10

HIGH

383.00

LOW

358.00

NSE 15:50 | 14 Dec 370.85 13.45
(3.76%)
OPEN

357.00

HIGH

383.40

LOW

357.00

OPEN 358.10
PREVIOUS CLOSE 355.95
VOLUME 115586
52-Week high 383.00
52-Week low 102.25
P/E 327.61
Mkt Cap.(Rs cr) 464
Buy Price 370.20
Buy Qty 875.00
Sell Price 0.00
Sell Qty 0.00
OPEN 358.10
CLOSE 355.95
VOLUME 115586
52-Week high 383.00
52-Week low 102.25
P/E 327.61
Mkt Cap.(Rs cr) 464
Buy Price 370.20
Buy Qty 875.00
Sell Price 0.00
Sell Qty 0.00

HOV Services Ltd. (HOVS) - Auditors Report

Company auditors report

To the Members of HOV Services Limited Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of HOV ServicesLimited("the Company") which comprise the Balance Sheet as at 31st March2017 the Statement of Profit and Loss the Cash Flow Statement for the year then endedand a summary of the 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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting 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 standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under. We conducted our audit inaccordance 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 theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial 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 thestandalone financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone 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 31st March 2017 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 ("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 inparagraphs 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) As required by Section 143 (3) of the Act with respect to the adequacy of theinternal financial controls over financial reporting of the Company and the operatingeffectiveness of such controls we give in ‘Annexure B' a separate report on the same(f) 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. (g) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 inour opinion and to the best of our information and according to the explanations given tous: (i) The Company does not have pending litigations which would impact its financialposition. (Refer Note no 20.2); (ii) The Company did not have any long-term contractsincluding derivative contracts for which there are any material foreseeable losses.

(iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

(iv) The Company has disclosed the holdings as well as dealings in Specified Bank Notesduring the period from 8th November 2016 to 30th December 2016 in aforesaid financialstatements (Refer Note 20.13) and the same was in accordance with the books of accountsmaintained by the Company.

For Lodha& Company

Chartered Accountants Firm Registration No: 301051E

R P Baradiya

Partner

Membership No. 44101

Place: Vashi Date: May 29 2017

"Annexure A" ANNEXURE REFERRED TO IN PARAGRAPH "REPORT ON OTHER LEGALAND REGUALTORY REQUIREMENTS" OF OUR REPORT TO THE MEMBERS OF HOV SERVICES LIMITED FORTHE YEAR ENDED 31ST MARCH 2017

On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we state that: 1.a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. b) The Company has carried outphysical verification of all its fixed assets during the year.

In our opinion the frequency of verification is reasonable considering the size of theCompany and the nature of its assets. No material discrepancies were noticed on suchverification. c) There are no immovable properties owned by the Company under FixedAssets. Therefore Para 3 (i) (c) of the Order is not applicable to the Company.

2. The Company does not have any inventory. Therefore Para 3 (ii) of the Order is notapplicable to the Company.

3. During the year the Company has not granted any loans secured or unsecured tocompanies firms Limited Liability Partnership or other parties covered in the registermaintained under section 189 of the Act. Therefore Para 3 (iii) of the Order is notapplicable to the Company.

4. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respect tothe loans given and investments made and security provided.

5. No deposits within the meaning of directives issued by RBI (Reserve Bank of India)and Sections 73 to 76 or any other relevant provisions of the Act and rules framedthereunder have been accepted by the Company.

6. According to the information and explanations given to us the maintenance of costrecords has not been prescribed by the Central Government under Section 148 (1) of the Actfor any of the activities of the Company.

7. a) The Company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income tax sales-tax service tax duty ofcustoms duty of excise value added tax and any other material statutory dues applicableto the Company with the appropriate authorities. No undisputed amounts payable in respectof the aforesaid statutory dues were outstanding as at the last day of the financial yearfor a year of more than six months from the date they became payable. b) According to therecords of the Company there are no dues of income tax or sales tax or service tax orduty of customs or duty of excise or value added tax which have not been deposited onaccount of any dispute.

8. During the year the Company has not defaulted in repayment of dues to Banks.Further the Company has not taken any loan or borrowing from a financial institutiongovernment or debenture holders.

9. The Company has utilised the term loan taken from a bank for the purposes for whichit was raised. Further the Company has not raised any money by way of initial public offeror further public offer in the recent past.

10. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing standards in India andaccording to the information and explanations given to us we have neither come across anyinstance of fraud by officers or employees of the Company noticed or reported during theyear nor have we been informed of such case by the management.

11. According to the information and explanations given to us and based on ourexamination of the books and records of the Company the Company has paid / provided forthe managerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

12. In our opinion the Company is not Nidhi Company. Therefore Para 3 (xii) of theOrder is not applicable to the Company.

13. All transactions with the related parties are in compliance with section 177 and188 of Act and the details have been disclosed in the Financial Statements (Refer noteNo.20.6 to the standalone financial statements for the year ended March 31 2017) asrequired by the applicable accounting standards.

14. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures. Therefore Para 3 (xiv) ofthe Order is not applicable to the Company.

15. The Company has not entered into any non-cash transactions with directors orpersons connected with him under section 192 of the Act. Therefore Para 3 (xv) of theOrder is not applicable to the Company.

16. The Company is not required to be registered under section 45 IA of the ReserveBank of India Act 1934.

For Lodha& Company

Chartered Accountants Firm Registration No: 301051E

R P Baradiya

Partner

Membership No. 44101

Place: Vashi Date: May 29 2017

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of HOVSERVICES LIMITED ("the Company") as of March 31 2017 in conjunction with ouraudit of standalone financial statement 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the financialstatements.

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 March 31 2017 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 Lodha& Company

Chartered Accountants Firm Registration No: 301051E

R P Baradiya

Partner

Membership No. 44101

Place: Vashi Date: May 29 2017