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Hindustan Housing Company Ltd.

BSE: 509650 Sector: Others
NSE: N.A. ISIN Code: INE083O01019
BSE 00:00 | 15 Sep Hindustan Housing Company Ltd
NSE 05:30 | 01 Jan Hindustan Housing Company Ltd
OPEN 35.15
PREVIOUS CLOSE 35.15
VOLUME 69
52-Week high 35.15
52-Week low 35.15
P/E 0.05
Mkt Cap.(Rs cr) 0
Buy Price 35.15
Buy Qty 3820.00
Sell Price 0.00
Sell Qty 0.00
OPEN 35.15
CLOSE 35.15
VOLUME 69
52-Week high 35.15
52-Week low 35.15
P/E 0.05
Mkt Cap.(Rs cr) 0
Buy Price 35.15
Buy Qty 3820.00
Sell Price 0.00
Sell Qty 0.00

Hindustan Housing Company Ltd. (HINDHOUSINGCO) - Auditors Report

Company auditors report

To the Members of The Hindustan Housing Company Limited Report on the Audit ofFinancial Statements

Opinion

We have audited the accompanying lnd AS Financial Statements of M/s The HindustanHousing Company Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2020 the Statement of Profit and Loss including Other Comprehensive Incomethe Cash Flow Statement and the Statement of Changes in Equity for the year then ended andnotes to the Financial Statements including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as financial statements).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act2013 as amended (the 'Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in Indiaincluding Indian Accounting Standards ('Lnd AS') specified under Section 133 of the Actof the state of affairs of the Company as at 31 March 2020 and its profit including othercomprehensive loss its cash flows and the changes in equity for the year ended on thatdate.

Basis of Opinion

We conducted our audit of the financial statements in accordance with Standards onAuditing (SAs) specified under Section 143(10) of the Act Our responsibilities underthose standards are further described in the ‘Auditors Responsibilities for the Auditof the Financial Statements' section of our report. We are independent of the Company inaccordance with the 'Code of Ethics' issued by the Institute of Chartered Accountants ofIndia ('ICAF) together with the ethical requirements that are relevant to our audit offinancial statements under the provisions of the Act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the financial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ending 31s'March 2020. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. For each matter below our description of how our auditaddressed the matter is provided in that context.

We have determined the matters described below to be the Key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in the'Auditor's Responsibilities for the Audit of the Financial Statements' section of ourreport including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the financial statements. The results of our audit procedures includingthe procedures performed to address the matters below provide the basis for our auditopinion on the accompanying financial statements.

Key Audit Matters How our Audit addressed the key audit matter
1. Defined benefit obligation
The valuation of the retirement benefit schemes in the Company is determined with reference to various actuarial assumptions including discount rate future salary increases rate of inflation mortality rates and attrition rates. A small change in these assumptions can have a material impact on the estimated defined benefit obligation. • Our audit procedures include the following;
Refer Note no 29 to the Financial Statements. Accordingly the same has been considered as a key audit matter. • Reviewed the fair valuation reports obtained by the management by involvement of external valuation experts.
• Assessed the methodology and the assumptions applied in determining the fair value by engaging valuation specialists.
• Assessed the objectivity independence and competence of the Company's external specialists involved in the process.
• We have examined the key controls over the process involving member data formulation of assumptions and the financial reporting process in arriving at the provision for retirement benefits.
• We tested the controls for determining the actuarial assumptions and the approval of those assumptions by senior management. We found these key controls were designed implemented and operated effectively and therefore determined that we could place reliance on these key controls for the purposes of our audit.
• We tested the employee data used in calculating the obligation and where material we also considered the treatment of curtailments settlements past service costs benefits paid and any other amendments made to obligations during the year. From the evidence obtained we found the data and assumptions used by management in the actuarial valuations for retirement benefit obligations to be appropriate.
• Assessed the adequacy of disclosure in Note 29 in the financial statements.
2. Impact of Covid-19 on the Financial Statement
Corona virus disease 2019 ('COV1D- 19') was declared a global pandemic by World Health Organisation. The Company has taken into account the possible impacts of COVID-19 in preparation of the financial statements including but not limited to its assessment of liquidity recoverable values of its financial and non-financial assets impact on revenues and on costs. We have performed the following procedures to assess and evaluate the impact on financial statements because of business decisions government actions or economic environment developments:
Refer Note. 42 to the Financial Statements • We assessed the disclosures on COVID-19 made in the financial statements.
• Enquired with the Management about impact on revenues liquidity position and contractual cash flows.
• Discussed with appropriate senior management and evaluated management's underlying key assumptions in assessing the impact of Covid-19.
• Our ability to perform regular audit procedures has been impacted which has required us in certain cases to perform alternative audit procedures and exercise significant judgment in respect of Audit and quality control procedures which were earlier performed in person could not be performed; and hence alternative procedures have been performed based on inquiries (through phone calls and e-mail communications) and review of scanned documentation sent through e-mails followed up with sighting with original documents.

We have determined that there are no other key audit matters to communicate in ourreport.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises tire information included in the Annual Report (comprisingManagement Discussion and Analysis Corporate Governance and Directors' Report) but doesnot include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with tire financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the the Act with respect to the preparation of these financial statements togive a true and fair view of the financial position financial performance including othercomprehensive loss cash flows and changes in equity of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards specified under Section 133 of the Act read with the Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actior safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; 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.

In preparing the financial statements Management is responsible for assessing theCompany's ability to continue as going concern disclosing as applicable matters relatedto going concern and using the going concern basis of accounting unless Management eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditors' Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

* Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of interna! control

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances Under section T43(3){i)of the Act we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls system with reference to financial statements inplace and the operating effectiveness of such controls

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

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 financial statements of thefinancial year ended .31st March 2020 and are therefore the key audit matters.We describe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (hereinafter referred toas "the Order") issued by the Central Government of India in terms ofsub-Seclion (11) of the Section 143 of the Act we give in the "Annexure A" astatement on the matters specified in 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 Statement of Profit and Loss including Other ComprehensiveIncome Cash Flow Statement and the Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account;

d. In our opinion the aforesaid financial statements comply with the Indian AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended;

e. On the basis of written representations received from the directors as on March 312020 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 to ourseparate report in "Annexure B" to this report

g. 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 provisions of section!97 read with Schedule V to the Act;

h. With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:

i. The Company has disclosed the impact if any of pending litigations as at March312020 on its financial position in its financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts. The Companyhas not entered into any Derivative Contracts during the financial year;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended March 312020.

"ANNEXURE A" TO INDEPENDENT AUDITORS' REPORT

(The Annexure referred to in our report to the members of The Hindustan Housing CompanyLimited for the year ended March 312020.)

(i) In respect of its Fixed Assets:

(a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) As per the explanation given to us all property plant and equipment have not beenphysically verified by the Management during the year but there is a regular program ofverification designed to cover all items in a phased manner over a period of three yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noticed on such verification

(c) According to the information and explanations given to us by the Management and onthe basis of our examination of the records of the Company the title deeds of immovableproperties as disclosed in Note 2 on property plant and equipment to the financialstatements are held in the name of the Company.

(ii) The Company is a Service Company primarily rendering various administrative andallied services. Accordingly it does not hold any Inventory. Consequently clause (ii) ofparagraph 3 of the Order is not applicable to the Company and hence not commented upon.

(iii) In our opinion and according to information and explanations given to us theCompany has not granted any loans secured or unsecured to Companies firms or otherparlies covered in the register maintained under Section 189 of the Act during the year.Consequently clauses (iii) (a) (iii) (b) and (iii) c of paragraph 3 of the Order arc notapplicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to usthere are no loans investments guarantees and securities granted in respect of whichprovisions of Section 185 and 186 of the act are applicable and hence not commented upon.

(v) The Company has not accepted deposits from the public of the nature covered underthe provisions of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits)Rules 2014 (as amended). Accordingly the provisions of clause 3(v) of the Order are notapplicable to the Company and hence not commented upon.

(vi) To the best of our knowledge and as explained the Central Government has notprescribed the maintenance of cost records under Section 148(1) of the Act for any of theservices rendered by the Company.

(vii) In respect of Statutory Dues:

(a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including Provident Fund Income Tax Goods and Service TaxCess and other material statutory dues applicable to it with the appropriate authorities.There were no dues towards Investor Education and Protection Fund Employees' StateInsurance Custom Duty and Excise Duty during the year.

(b) According to information and explanations given to us there were no undisputedamounts payable in respect of Income Tax Goods and Service Tax Cess and other materialstatutory dues in arrears as on 31st March 2020 for a period of more than six months fromthe date they become payable.

(c) According to information and explanations given to us upon our enquiries in thisregard and records of the Company the Company has no dues that has not been deposited bythe Company on account of any dispute.

(viii) According to the records of the Company examined by us and information andexplanations given to us the Company has no dues to any financial institution or banks.The company has not issued any debentures.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyclause (ix) of paragraph 3 of the Order is not applicable.

(x) Based on the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the Management we report that no fraud by the Company or no fraud on the Companyby the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations give to us by the Management themanagerial remuneration has been paid/provided in accordance with requisite approvalsmandated by the provisions of section 197 read with Schedule V of the Act.

(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly clause (xii) of paragraph 3 of the Order isnot applicable and hence not commented upon.

(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable. The details of relatedparty transactions have been disclosed in the financial statements as required by theapplicable accounting standard.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly clause (xiv) of paragraph 3 of the Order is not applicable andhence not commented upon.

(xv) According to the information and explanations given to us by the

Management the Company has not entered into non<ash transactions with directors orpersons connected with him as referred to in section 192 of the Act.

(xvi) According to the information and explanations given to us by the

Management the provisions of section 45-IA of the Reserve Bank of India Act 1934 arenot applicable to the Company.

"ANNEXURE B" TO INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls 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 TheHindustan Housing Company Limited ("the Company") as of March 31 2020 inconjunction with our audit of the Financial Statements of the Company for the year endedon 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India(TCAI'). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 ("theAct").

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 and the Standards on Auditing deemed to be prescribed under Section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by 1CAI. 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of Financial Statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and Directors of the Company; and

3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 2020 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.

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