1) We have audited the accompanying standalone financial statements of THE
HINDUSTAN HOUSING COMPANY LIMITED ("the Company") which
comprise the Balance Sheet as at March 31, 2024, the Statement of Profit and Loss
(including Other Comprehensive Income), Statement of Changes in Equity and
Statement of Cash Flows for the year ended March 31, 2024 and notes to the
financial statements, including a summary of material accounting policies and other
explanatory information (hereinafter referred to as "the standalone financial
statements").
2) In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid Standalone Financial Statements give the information
required by the Companies Act, 2013 ("the Act") in the manner so required and
give a true and fair view in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting
principles generally accepted in India, of the state of affairs of the Company as at
March 31, 2024 and its profit and total Comprehensive Income, changes in equity
and its cash flows for the year ended on that date.
Basis for Opinion
3) We conducted our audit of the Standalone Financial Statements in accordance with
the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described in the Auditor's
Responsibilities for the Audit of the Standalone 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 (ICAI) together with the
independence requirements that are relevant to our audit of the Standalone
Financial Statements under the provisions of the Act and the Rules made
thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI's Code of Ethics. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion on the Standalone Financial Statements.
Key Audit Matters
4) Key audit matters are those matters that, in our professional judgement, were of
most significance in our audit of the Standalone Financial Statements of the current
period. We have determined that there are no key audit matters to communicate in
our report.
Other Information
5) The Company's Board of Directors is responsible for the other information. The
other information comprises the information included in the Annual report but
does not include the Standalone financial statements and our auditor's report
thereon.
6) Our opinion on the Standalone financial statements does not cover the other
information and we do not express any form of assurance conclusion thereon.
7) In connection with our audit of the standalone financial statements, our
responsibility is to read the other information and in doing so, consider whether the
other information is materially inconsistent with the standalone financial
statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
8) 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 and Board of Directors' Responsibilities for the Standalone Financial
Statements
9) 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 of
these Standalone Financial Statements that give a true and fair view of the financial
position, the financial performance, total comprehensive income, changes in equity
and cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Ind AS prescribed under section 133 of
the Act.
10) 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 Standalone Financial Statements that give a
true and fair view and are free from material misstatement, whether due to fraud or
error.
11) In preparing the Standalone Financial Statements, 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 management either intends to liquidate
the Company or to cease operations or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company's financial
reporting process.
Auditor's Responsibilities for the Audit of the Standalone Financial Statements
12) Our objectives are to obtain reasonable assurance about whether the Standalone
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 Standalone
Financial Statements.
13) 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 Standalone 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 financial controls 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 with
reference to standalone financial statements 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 Standalone 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 Standalone
Financial Statements, including the disclosures and whether the Standalone
Financial Statements represent the underlying transactions and events in a
manner that achieves fair presentation.
14) 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.
15) 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.
16) From the matters communicated with those charged with governance, we
determine those matters that were of most significance in the audit of the
Standalone Financial Statements of the current year 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. We conclude that
there are no key audit matters that need to be communicated.
Report on Other Legal and Regulatory Requirements
17) As required by the Companies (Auditor's Report) Order, 2020 ("the Order") issued
by the Central Government in terms of Section 143(11) of the Act, we give in
"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the
Order.
18) (A) 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, except
for certain matters in respect of audit trail as stated in paragraph 18(B)(vi) below.
(c) The Standalone Balance sheet, the Standalone Statement of Profit and Loss
(including Other Comprehensive Income), Standalone Statement of Changes in
Equity and the Standalone Statement of Cash Flow dealt with by this report are
in agreement with the relevant books of account.
(d) In our opinion, the aforesaid Standalone Financial Statements comply with the
Indian Accounting Standards prescribed under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31
March 2024 taken on record by the Board of Directors, none of the directors is
disqualified as on 31 March 2024 from being appointed as a director in terms of
Section 164(2) of the Act; and
(f) With respect to the adequacy of the internal financial controls with reference to
Standalone Financial Statements of the Company and the operating effectiveness
of such controls, refer to our separate report in "Annexure B".
(B) In accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014,
as amended 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 on its financial
position in its Standalone Financial Statements - Refer note 36 to the
Standalone 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 is no delay in transferring amounts, 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 have been advanced or loaned or invested (either from
borrowed funds or share premium or any kind of funds) by the Company to
or in any other persons or entities, including foreign entities
("Intermediaries"), with the understanding, whether recorded in writing or
otherwise, that the Intermediary shall:
• directly or indirectly lend or invest in other persons or entities identified
in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of
the Company or
• provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries.
b) The management has represented, that, to the best of its knowledge and
belief, no funds have been received by the Company from any persons or
entities, including foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing or otherwise, that the
Company shall:
• directly or indirectly, lend or invest in other persons or entities identified
in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of
the Funding Party or
• provide any guarantee, security or the like from or on behalf of the
Ultimate Beneficiaries; and
c) Based on such audit procedures as considered reasonable and appropriate
in the circumstances, nothing has come to our notice that has caused us to
believe that the representations under clause (iv) (a) and (iv) (b) contain
any material misstatement.
v. The Company has not paid or declared dividend during the year.
vi. The reporting under rule 11(g) of the Companies (Audit and Auditors)
Rules, 2014 is applicable from 1st April 2023.
Based on our examination which included test checks, the Company has
used an accounting software for maintaining its books of account which has
a feature of recording audit trail (edit log) facility except for:
a) The period 1st April 2023 to 11th March 2024 where edit log feature in the
primary accounting system was enabled but was not as per the
prescribed standards with respect to capturing the details if the log was
tampered/disabled. However, for the period other than mentioned above
we did not come across any instances of the audit trail feature being
tampered with.
b) The software used for computation of payroll where audit trail (edit log)
facility was not enabled throughout the year at transaction, master and
database level.
As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is
applicable from April 01, 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 March 31, 2024.
(C) With respect to the other matters to be included in the Auditor's Report as per
section 197 (16) of the Act:
In our opinion and according to the information and explanations given to us,
the remuneration paid by the Company to its director during the year is in
accordance with the provisions of Section 197 of the Act.
For M M Nissim & Co LLP
Chartered Accountants
Firm Registration No. 107122W/W100672
N. Kashinath
Partner
Membership. No. 036490
UDIN: 24036490BKGTSP5785
Place: Mumbai
Dated: 29th May 2024
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