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HB Stockholdings Ltd.

BSE: 532216 Sector: Financials
NSE: HBSL ISIN Code: INE550B01022
BSE 00:00 | 02 Aug 26.65 1.25
(4.92%)
OPEN

26.45

HIGH

26.65

LOW

25.20

NSE 00:00 | 02 Aug 26.70 1.25
(4.91%)
OPEN

26.00

HIGH

26.70

LOW

25.50

OPEN 26.45
PREVIOUS CLOSE 25.40
VOLUME 4029
52-Week high 32.85
52-Week low 4.75
P/E 1.61
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 26.45
CLOSE 25.40
VOLUME 4029
52-Week high 32.85
52-Week low 4.75
P/E 1.61
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

HB Stockholdings Ltd. (HBSL) - Auditors Report

Company auditors report

TO

THE MEMBERS OF HB STOCKHOLDINGS LIMITED Report on the Audit of theStandalone financial statements Opinion

We have audited the Standalone Financial Statements of HB StockholdingsLimited (“the Company”) which comprise the Standalone Balance Sheet as at 31stMarch 2020 and the Standalone Statement of Profit and Loss (including Other ComprehensiveIncome) Standalone Statement of Changes in Equity and Standalone Statement of Cash Flowsfor the year then ended and notes to the Standalone Financial Statements including asummary of the significant accounting policies and other explanatory information(hereinafter referred to as “the Standalone Financial Statements”).

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 (the “Act”) in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended (“Ind AS”) and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at 31stMarch 2020 and loss and other comprehensive income changes in equity and its cash flowsfor the year ended on that date.

Basis of Opinion

We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing (SAs) specified under Section 143(10) of theAct. Our responsibilities under those standards are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the Standalone Financial Statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence obtained by us is sufficient and appropriate to provide abasis for our opinion on the Standalone Financial Statements.

Key Audit Matters

We have determined that there is no key audit matter to communicate inour report. Information Other than the Standalone Financial Statements and Auditor'sReport thereon

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the Directors' Report tobe included in the Company's Annual Report but does not include the StandaloneFinancial Statements and our Auditor's Report thereon. The other information isexpected to be made available to us after the date of this Auditors' Report. Ouropinion on the Standalone Financial Statements does not cover the other information and wedo not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statements orour knowledge obtained in the audit or otherwise appears to be materially misstated.

Management's Responsibility for the Standalone FinancialStatements

The Company's management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the state ofaffairs Profit/ Loss and Other Comprehensive Income changes in Equity and Sash Flows ofthe Company in accordance with the a accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring accuracy and completeness of theaccounting records relevant to the preparation and presentation of the StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Financial Statements the Management andBoard of Directors are responsible for assessing the Company's ability to continue asa going concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends toliquidate the Company or to cease operations or has no realistic alternative but to doso.

Board of Directors is also responsible for overseeing theCompany's financial reporting process. Auditors' Responsibility for the Audit ofthe Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. UnderSection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Standalone Financial Statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements for the financial year ended 31 st March 2020 and aretherefore the key audit matters. We describe these matters in our auditor's reportunless law or regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourreport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits 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 of the Act we give in the Annexure ‘A' a statement on thematters specified in the paragraph 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Standalone Balance Sheet the Standalone Statement of Profitand Loss (including Other Comprehensive Income) the Standalone Statement of Changes inEquity and the Standalone Cash Flow Statement dealt with by this Report are in agreementwith the books of account;

(d) In our opinion the aforesaid Standalone Financial Statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014;

(e) On the basis of the written representations received from theDirectors as on 31st March 2020 taken on record by the Board of Directorsnone of the directors is disqualified as on 31 st March 2020 from beingappointed as a Director in terms of Section 164 (2) of the Act.

(f) With respect to the adequacy of the Internal Financial Controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to Annexure ‘B'.

(g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations as at 31stMarch 2020 on its financial position in its Financial Statements - Refer Note No.42.

ii. The Company did not have any long-term contracts includingderivative contracts as at 31st March 2020.

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

(h) With respect to the matter to be included in the Auditor'sReport under Section 197(16):

The Company has not paid any managerial remuneration for the year ended31st March 2020 to its directors.

FOR G. C. AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO.: 017851N
Sd/-
PLACE: NEW DELHI (G C AGARWAL)
DATED: 16th JUNE 2020 PROPRIETOR
(MEMBERSHIP NO. 083820)

ANNEXURE - A

The annexure referred to in Independent Auditor's Report to themembers of HB Stockholdings

Limited on the Standalone Financial Statements for the year ended on 31stMarch 2020 We

Report that:

1. a. The Company has maintained proper records showing fullparticulars including

quantitative details and situation of fixed assets;

b. As explained to us the management during the year has physicallyverified the fixed assets in a phased periodical manner which in our opinion isreasonable having regard to the size of the company and nature of its assets. No materialdiscrepancies were noticed on such physical verification.

c. The Company does not have any immovable property.

2. As explained to us inventories (Investments) have been physicallyverified 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. a. As explained to us the Company has not granted any loanssecured or unsecured to Companies firms Limited Liability Partnership or other partiescovered in the register maintained under Section 189 of the Companies Act 2013.

4. In our opinion and according to the information and explanationsgiven to us the company has complied with the provision of Section 185 and 186 of theAct with respect to the loans and investment made to the extent applicable to theCompany. As per the information and explanation given to us the Company has not given anyguarantee or provided any security in connection with a loan to any other body corporateor person.

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

6. The nature of the company's business/activities is such thatmaintenance of Cost Records under Section 148(1) of the Act is not applicable to theCompany.

7. a. According to the records of the Company undisputed statutorydues including

Provident Fund Employees' State Insurance Income Tax Goods andService Tax Customs Duty Excise Duty Value added tax Cess and other statutory dues tothe extent 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 2020 for a period of more than six monthsfrom the date of becoming payable.

b. According to the records of the Company there are no disputedstatutory dues that have not been deposited on account of matters pending beforeappropriate authorities.

8. In our opinion and according to the information and explanationsgiven to us the company has not defaulted in repayment of loan/ borrowing from bank. TheCompany does not have any loans or borrowings from any financial institution governmentor debenture holders during the year.

9. The Company did not raise any money by way of initial public offeror further public offer (including debt instruments). The term loans (vehicle loan) wereutilized for the purpose for which they were obtained.

10. In our opinion and according to the information and explanationgiven to us no fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the course of our audit.

11. According to the information and explanations given to us and basedon our examination of the record of the Company the Company has not paid/ provided formanagerial remuneration during the year.

12. In our opinion and according to the information and explanationsgiven to us the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of theorder is not applicable.

13. According to the information and explanations given to us and basedon or examinations of the records of the Company transactions with the related partiesare in compliance with Sections 177 and 188 of the Act where applicable and details ofsuch transaction have been disclosed in the financial statements as required by theapplicable accounting standards.

14. According to the information and explanations given to us and basedon our examination 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 basedon our examination 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 theReserve bank of India Act 1934 and such registration has been obtained by the Company.

FOR G. C. AGARWAL & ASSOCIATES
CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO.: 017851N
Sd/-
PLACE: NEW DELHI (G C AGARWAL)
DATED: 16th JUNE 2020 PROPRIETOR
(MEMBERSHIP NO. 083820)

ANNEXURE - B

Report on the Internal Financial Control under clause (i) of subsection 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the Internal Financial Controls over financialreporting of HB Stockholdings Limited (“the Company”) as of 31stMarch 2020 in conjunction with our audit of the Standalone Financial Statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining Internal Financial Controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sInternal Financial Controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the “Guidance Note”) and the Standards on Auditing issuedby ICAI and deemed to be prescribed under Section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. 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 aboutthe adequacy of the Internal Financial Controls system over financial reporting and theiroperating effectiveness. Our audit of Internal Financial Controls over financial reportingincluded obtaining an understanding of Internal Financial Controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Financial Statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's InternalFinancial Controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial 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 FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2020 based onthe 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/-
PLACE: NEW DELHI (G C AGARWAL)
DATED: 16th JUNE 2020 PROPRIETOR
(MEMBERSHIP NO. 083820)
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