| We have audited the accompanying financial statements of HB LEASING &
FINANCE COMPANY LIMITED ("the Company"), which comprises the
Balance Sheet as at March 31st, 2015, the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with
respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in 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 Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March 2015 and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("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
statement on the matters specified in paragraphs 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 best of our knowledge and belief were necessary for the
purpose of our audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e) on the basis of the written representations received from the
directors as on 31 st March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act;
f) with respect to the other matters to be included in the Auditor'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 the explanations given to us:
i. The Company has disclosed the impact of pending litigation on the
financial position in its financial Statements - Refer Note 29 to the
Financial Statements;
ii. The Company did not have any Long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
The annexure referred to in our report to the members of the company on
the financial statements for the year ended on 31st March, 2015, we
Report that:
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets. b. As explained to us, the fixed assets have been physically
verified by the management during the year in a phased periodical
manner, which in our opinion is reasonable, having regard to the size
of the company and nature of its assets. No material discrepancies were
noticed on such physical verification.
2. a. As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, no material discrepancies have been noticed on
physical verification of inventory as compared to the book records.
3. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the Register maintained
under Section 189 of the Companies Act, 2013 ('the Act').
4 In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and sale of goods. However,
during the year there was neither purchase of any inventory or fixed
asset nor sale of services. During the course of our audit, we have not
observed any major weakness in the internal control system.
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 Cost Records 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 including Provident Fund, Employees' State Insurance, Income Tax,
Sales-Tax,Value added tax, Wealth Tax, Customs Duty, Excise Duty,
Service tax, Cess and other statutory dues to the extent and as
applicable to the company have been generally regularly deposited by
the company during the year with the appropriate authorities. According
to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as at 31st
March, 2015 for a period of more than six months from the date of
becoming payable.
b. The disputed statutory dues aggregating to Rs. 17,46,60,436/- that
have not been deposited on account of matters pending before
appropriate authorities are as under :
Sr. Name of the Nature of the Forum where Amount
No. statute Dues Dispute is pending rs
1. Income Tax Income Tax Hon'ble Delhi
Act, 1961 High Court 20,70,090/-
2. Income Tax Income Tax Income Tax
Act, 1961 Appellate
Tribunal, Delhi 16,96,28,676/-
3. Income Tax Income Tax Commissioner of
Act, 1961 Income Tax
(Appeal) 29,61,670/-
TOTAL 17,46,60,436/-
c. In our opinion and according to the information and explanations
given to us, during the year no amount was required to be transferred
to investor education and protection fund in accordance with the
provisions of the Companies act, 1956.
8. The accumulated losses of the company at the financial year end are
more than fifty percent of its net worth. The company has not incurred
cash losses during the financial year covered by our audit but incurred
cash losses in the immediately preceding financial year.
9. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders during the year.
10. According to the information and explanations given to us, as at
the year end the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
11. The Company did not have any terms loans outstanding during the
year
12. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the course of audit.
For P. BHOLUSARIA & CO.
CHARTERED ACCOUNTANTS
Firm Registration No. : 000468N
Sd/-
AMIT GOEL
Place: Gurgaon (PARTNER)
Date : 28th May, 2015 Membership No. 92648
|