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HB Stockholdings Ltd.

BSE: 532216 Sector: Financials
NSE: HBSL ISIN Code: INE550B01022
BSE 00:00 | 24 Jan 7.06 0.31
(4.59%)
OPEN

6.42

HIGH

7.07

LOW

6.42

NSE 00:00 | 24 Jan 6.90 0.25
(3.76%)
OPEN

6.65

HIGH

6.90

LOW

6.65

OPEN 6.42
PREVIOUS CLOSE 6.75
VOLUME 197
52-Week high 9.45
52-Week low 6.10
P/E
Mkt Cap.(Rs cr) 5
Buy Price 6.42
Buy Qty 100.00
Sell Price 7.08
Sell Qty 2588.00
OPEN 6.42
CLOSE 6.75
VOLUME 197
52-Week high 9.45
52-Week low 6.10
P/E
Mkt Cap.(Rs cr) 5
Buy Price 6.42
Buy Qty 100.00
Sell Price 7.08
Sell Qty 2588.00

HB Stockholdings Ltd. (HBSL) - Auditors Report

Company auditors report

TO THE MEMBERS OF HB STOCKHOLDINGS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanyingstandalonefinancialstatements of HBSTOCKHOLDINGS LIMITED ("the Company") which comprise the Balance Sheet asat March 31 2018 the

Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation and presentation of these standalone financial statements that give a trueand fair view of the financial position financial performance and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the 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 standalonefinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditingspecified under Section

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 aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the Standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company's preparation of the Standalone financial statements that give a trueand fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the Standalonefinancial statements. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

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 Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2018 and its loss and its cash flows for the yearended 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 of the Act we give in the Annexure A a statement on the mattersspecified in the 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 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 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 Cashflow statement dealt with by this Report are in agreement with the books of account;

(d) in our opinion the aforesaid standalone financial statementscomply with Accounting Standards specified under Section 133 of the Act read with Rule 7of the

Companies (Accounts) Rules 2014;

(e) on the basis of the written representations received from thedirectors as on 31 March

2018 taken on record by the Board of Directors none of the directorsis disqualified as on 31 March 2018 from being appointed as a director in terms of Section164 (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 our separate report in "Annexure B"; and

(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 litigationson its financial position in its financial statements Refer Note 33 to the financialstatements; ii. the Company did not have any long-term contracts including derivativecontracts for which there were any material foreseeable losses; iii. There were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany.

FOR G C AGARWAL & ASSOCIATES

CHARTERED ACCOUNTANTS FIRM REGISTRATION NO.: 017851N

Sd/- (G C AGARWAL) PLACE : Gurugram PROPRIETOR DATED : 25/05/2018(Membership No. 083820)

Annexure – A to the Auditors' Report

The annexure referred to in Independent Auditor's Report to themembers of the company on the standalone financial statements for the year ended on 31stMarch2018 We Report that: 1. a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets; b. As explainedto us the management during the year has physically verified the fixed assets in a phasedperiodical manner which in our opinion is reasonable having regard to the size of thecompany and nature of its assets. No material discrepancies were noticed on such physicalverification. 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 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 Sales-TaxService 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 except for nonpayment ofinstallments of advance tax. According to the information and explanations given to us noundisputed amounts payable in respect of the aforesaid dues were outstanding as at 31stMarch 2018 for a period of more than six months from the date of becoming payable. b. Thedisputed statutory dues aggregating to ` 2333585/- that have not been deposited onaccount of matters pending before appropriate authorities are as under:

Name of the statute

A.Y.

Nature of the Dues Forum where Dispute is pending

Amount (`)

1. Income Tax Act 1961

2007-08

Income Tax Income Tax Appellant Tribunal

1859100/-

2. Income Tax Act 1961

2008-09

Income Tax Assessing officer

173453/-

3. Income Tax Act 1961

2005-06

Income Tax Commissioner of Income Tax (Appeal)

301032/-

TOTAL

2333585/-

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 andbased on or examinations of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transaction have been disclosed in the financial statements as required bythe applicable accounting standards. 14. According to the information and explanationsgiven to us and based on our examination of the record of the Company the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. 15. According to the information and explanationsgiven to us and based on our examination of the record of the Company the Company has notentered into non-cash transactions with directors or persons connected with him.Accordingly paragraph 3(xv) of the 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/-(G C AGARWAL) PLACE : Gurugram PROPRIETOR DATED : 25/05/2018(Membership No. 083820)

Annexure – B to the Auditors' Report

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

Limited ("the Company") as of 31 March 2018 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 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 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 extent applicable to anaudit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects. Our audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding ofinternal financial controls over financial reporting assessing the risk that a materialweakness exists and testing and evaluating the design and operating effectiveness ofinternal control based on the assessed risk. 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.

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

Stockholdings internal financial controls over financial reporting tofuture periods 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 adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2018 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/-(G C AGARWAL)

PLACE : Gurugram PROPRIETOR

DATED : 25/05/2018 (Membership No. 083820)