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HB Portfolio Ltd.

BSE: 532333 Sector: Financials
NSE: N.A. ISIN Code: INE638B01025
BSE 11:45 | 04 Aug 35.70 -0.45
(-1.24%)
OPEN

37.95

HIGH

37.95

LOW

35.70

NSE 05:30 | 01 Jan HB Portfolio Ltd
OPEN 37.95
PREVIOUS CLOSE 36.15
VOLUME 18630
52-Week high 37.95
52-Week low 13.10
P/E
Mkt Cap.(Rs cr) 38
Buy Price 35.70
Buy Qty 21.00
Sell Price 36.70
Sell Qty 50.00
OPEN 37.95
CLOSE 36.15
VOLUME 18630
52-Week high 37.95
52-Week low 13.10
P/E
Mkt Cap.(Rs cr) 38
Buy Price 35.70
Buy Qty 21.00
Sell Price 36.70
Sell Qty 50.00

HB Portfolio Ltd. (HBPORTFOLIO) - Auditors Report

Company auditors report

To

The Members of HB PORTFOLIO LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of HB Portfolio Limited (“theCompany”) which comprise the Standalone Balance Sheet as at 31st March 2020 and theStandalone Statement of Profit and Loss (including other comprehensive income) StandaloneStatement of changes in equity and Standalone Statement of cash flows for the year thenended and notes to the Standalone Financial Statements including a summary of thesignificant accounting policies and other explanatory information (hereinafter referred toas “the Standalone Financial Statements”).

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 Companies Act 2013 (the “Act”) in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under Section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended (“Ind-AS”) and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2020 and profit and othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis of Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing (SAs) specified under Section 143(10) of the Act. Ourresponsibilities under those standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the Standalone Financial Statements under the provisionsof the Act and the Rules made thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence obtained by us is sufficient and appropriate to provide a basisfor our opinion on the Standalone Financial Statements.

Key Audit Matters

We have determined that there are no key audit matter to communicate in our report.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's management and Board of Director's are responsible for the otherinformation. The other information comprises the Director's report to be included in theCompany's Annual report but does not include the Standalone Financial Statements and ourAuditor's report thereon. The other information is expected to be made available to usafter the date of this Auditors' Report. Our opinion on the Standalone FinancialStatements does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the Standalone Financial Statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the Standalone Financial Statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated.

Management's Responsibility for the Standalone Financial Statements

The Company's management and Board of Director's are responsible for the matters statedin Section 134(5) of the Act with respect to the preparation of these Standalone FinancialStatements that give a true and fair view of the state of affairs profit/loss and othercomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind-AS) specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring accuracy and completeness of the accounting records relevant tothe preparation and presentation of the Standalone Financial Statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements the Management and Board of Directorsare responsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Director's is also responsible for overseeing the Company's financialreporting process.

Auditors' Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the StandaloneFinancial Statements as a whole are free from material misstatement whether due to fraudor error and to issue an Auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign 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 Company hasadequate Internal Financial Controls system in place and the operating effectiveness ofsuch controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our Auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourAuditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the StandaloneFinancial Statements including the disclosures and whether the Standalone FinancialStatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone Financial Statementsfor the financial year ended 31st March 2020 and are therefore the key auditmatters. We describe these matters in our Auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

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 in theparagraph 3 and 4 of the Order to the extent applicable.

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 standalone Balance Sheet the standalone Statement of Profit and Loss(including other comprehensive income) the standalone statement of changes in equity andthe standalone Cash Flow Statement dealt with by this Report are in agreement with thebooks 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 March312020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312020 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer toAnnexure ‘B'.

(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 does not have any pending litigations which would impact its financialposition

ii. The Company did not have any long-term contracts including derivative contracts asat 31st March 2020.

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

(h) With respect to the other matters to be included in the Auditor's report inaccordance with the requirements of Section197(16) of the act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its Directors during the year is inaccordance with the provision of Section 197 of the Act.

FOR G. C. AGARWAL & ASSOCIATES
Chartered Accountants
Firm Registration No.: 017851N
Sd/-
G C AGARWAL
Place: Gurugram (Proprietor)
Dated: 29th June 2020 Membership No. 083820

ANNEXURE-A

The Annexure referred to in Independent Auditor's Report to the members of HB PortfolioLimited on the Standalone Financial Statements for the year ended on 31stMarch 2020 we report that:

1. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

(b) As explained to us the management during the year has physically verified thefixed assets in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on 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. 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 and guarantee given and security provided to the extentapplicable to the Company.

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 includingProvident Fund Employees' State Insurance Income Tax Sales-Tax Goods and Service TaxCustoms

Duty Excise Duty Value Added Tax Cess and Other Statutory Dues to the extent and asapplicable to the Company have been generally regularly deposited by the Company duringthe year with the appropriate authorities. According to the information and explanationsgiven to us no undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at 31st March 2020 for a period of more than six months from the date ofbecoming payable.

(b) According to the records of the Company there are no disputed statutory dues thathave not been deposited on account of matters pending before appropriate authorities.

8. In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of loans/borrowings from bank. There are no loansor borrowings taken by the Company from any financial institution government or debentureholders during the year.

9. The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments). The term loans (vehicle loan) were utilized for thepurpose for which they were obtained.

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 of Section 197 readwith 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 has made application to Reserve Bank of India for registration underSection 45-IA of the Reserve Bank of India Act 1934 and such registration is yet to bereceived. (Refer Note No. 34)

FOR G. C. AGARWAL & ASSOCIATES
Chartered Accountants
Firm Registration No.: 017851N
Sd/-
G C AGARWAL
Place: Gurugram (Proprietor)
Dated: 29th June 2020 Membership No. 083820

ANNEXURE-B

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 HBPORTFOLIO LIMITED (“the Company”) as of 31st March 2020 inconjunction with our Audit of the Standalone Financial Statements of the Company for theyear 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 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 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.

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 31st March 2020based 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 G. C. AGARWAL & ASSOCIATES
Chartered Accountants
Firm Registration No.: 017851N
Sd/-
G C AGARWAL
Place: Gurugram (Proprietor)
Dated: 29th June 2020 Membership No. 083820

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