We have audited the accompanying Financial Statements of HB LEASING &
FINANCE COMPANY LIMITED (“the Company”), which comprise the balance
sheet as at 31st March 2024, and the statement of profit and loss (including other
comprehensive income), statement of cash flows and statement of changes in
equity for the year then ended, and notes to the Financial Statements, including a
summary of the significant accounting policies and other explanatory information
(hereinafter referred to as “the Financial Statements”).
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 Companies Act, 2013, as amended (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 2024,
its profit including other comprehensive loss, its cash flows and changes in
equity for the year ended on that date.
Basis of Opinion
We conducted our audit of the Financial Statements in accordance with the
Standards on Auditing (SAs), as specified under section 143(10) of the Act.
Our responsibilities under those SAs are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Company in accordance with the Code of Ethics
issued by the Institute of Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the Financial Statements under the
provisions of the Act and the Rules thereunder, and we have fulfilled our other
ethical responsibilities in accordance with these requirements and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion on the Financial Statements.
Key Audit Matters
We have determined that there are no key audit matter to communicate in our
report.
Information Other than the Financial Statements and Auditor's Report
Thereon
The Company’s Board of Directors is responsible for the other information. The
other information comprises the Directors report to be included in the Company’s
Annual report, but does not include the financial statements and our auditor’s
report thereon. Our opinion on the financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility
is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are 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 section
134(5) of the Act with respect to the preparation of these Financial Statements
that give a true and fair view of the financial position, financial performance
including other comprehensive income, changes in equity and cash flows of the
Company in accordance with the accounting principles generally accepted in
India, including the Indian Accounting Standards (Ind AS) specified under section
133 of the Act read with the Companies (Indian Accounting Standards) Rules,
2015, as amended. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding
of 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 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.
In preparing the Financial Statements, the Management and Board of Directors
are responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Board of Directors either
intends to liquidate the Company or to cease operations, or has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s
financial reporting process.
Auditors' Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due 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 audit
conducted in accordance with SAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design 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 has adequate internal financial controls
system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
the management.
• Conclude on the appropriateness of management’s use of the going
concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the
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’s report. However, future events or conditions may
cause the Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves
fair presentation.
Materiality is the magnitude of misstatements in the financial statements that,
individually or in aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the financial statements may be influenced.
We consider quantitative materiality and qualitative factors in (i) planning the
scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during
our audit.
We also provide those charged with governance with a statement that we have
complied with relevant ethical requirements regarding independence, and to
communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the financial
statements for the financial year ended 31st March, 2023 and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law
or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”)
issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, and on the basis of such checks of the books and
records of the Company as we considered appropriate and according to
the information and explanations given to us, we give in the Annexure ‘A'
a statement on the matters 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 explanations
which to the best of 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 the Company so far as it appears from our examination of
those books;
(c) The Balance Sheet, the Statement of Profit and Loss (including other
comprehensive income), the statement of changes in equity and the
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
Indian Accounting Standards (Ind AS) specified under Section 133 of
the Act read with Companies (Indian Accounting Standards) Rules,
2015, as amended.
(e) On the basis of the written representations received from the directors
as on 31st March, 2024 taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2024 from being
appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness
of such controls, refer to Annexure ‘B’. Our report expresses an
unmodified opinion on the adequacy and operating effectiveness of
the Company’s internal financial controls over financial reporting.
(g) 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 litigations
as at 31st March, 2024 on its financial position in its financial
statements - Refer Note No 36
ii. The Company did not have any long-term contracts including
derivative contracts as at 31st March, 2024
iii. There were no amounts which were required to be transferred
to the Investor Education and Protection Fund by the Company.
iv. (a) The Management has represented that, to the best of its
knowledge and belief, no funds (which are material either
individually or in the aggregate) have been advanced or
loaned or invested (either from borrowed funds or share
premium or any other sources or kind of funds) by the
company to or in any other person or entity, including
foreign entity (“Intermediaries”), with the understanding,
whether recorded in writing or otherwise, that the
intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner
whatsoever by or on behalf of the company (“Ultimate
Beneficiaries”) or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented that, to the best of its
knowledge and belief, no funds (which are material either
individually or in the aggregate) have been received by
the company to or in any other person or entity, including
foreign entity (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the
intermediary shall, whether, directly or indirectly lend or
invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party (“Ultimate
Beneficiaries”) or provide any guarantee, security or the
like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered
reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that
the representations under sub-clause (i) and (ii) of Rule
11(e), as provided under (a) and (b) above, contain any
material misstatement.
v. No dividend has been declared/ paid by the Company during
the year.
vi. Based on our examination, which included test checks, the
company has used accounting software for maintaining its
books of account for the financial year ended 31 st March, 2024
which has a feature of recording audit trail (edit log) facility and
the same has operated throughout the year for all relevant
transactions recorded in the softwares. Further, during the
course of our audit we did not come across any instance of the
audit trail feature being tampered with.
As proviso to Rule 3(1) of the Companies (Accounts) Rules,
2014 is applicable from 01st April, 2023, reporting under Rule
11(g) of the Companies (Audit and Auditors) Rules, 2014 on
preservation of audit trail as per the statutory requirements for
record retention is not applicable for the financial year ended
31st March, 2024.
(h) With respect to the matter to be included in the Auditor’s Report under
section 197(16):
The Company has not paid any managerial remuneration for the year ended
31st March, 2024 to its directors.
For N.C. Aggarwal & Co.
Chartered Accountants
Firm Registration No. 003273N
G. K. Aggarwal
Partner
Date: 17lh May, 2024 M. No. 086622
Place: Gurugram UDIN: 24086622BKAOWI6286
|