To
The Members of HB PORTFOLIO LIMITED
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying Standalone Financial Statements of HB Portfolio
Limited ("the Company"), which comprise the standalone balance sheet as at
31st March 2023, and the standalone statement of profitand loss (including other
comprehensive income), standalone statement of cash flows and the standalone statement of
changes in equity for the year then ended, and notes to the Standalone Financial
Statements, including a summary of the significant accounting policies and other
explanatory information (hereinafter referred to as "the
Statements").
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, 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 31 March 2023, its profit including
other comprehensive loss, its cash flows and changes in equity for the year ended on hat
date.
Basis of Opinion
We conducted our audit of the Standalone 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 Auditors 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 together with the ethical requirements that are relevant to our audit of the
Standalone 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 Standalone
Financial Statements.
Key Audit Matters
We have determined that there are no key audit matter to communicate in our report.
Information Other than the Standalone Financial Statements and Auditors Report Thereon
The Companys Board of Directors is responsible for the other information. The other
information comprises the Directors report to be included in the Companys Annual report,
but does not include the standalone financial statements and our auditors report thereon.
Our opinion on the standalone 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 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.
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.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Act with respect to the preparation of these Standalone Financial Statements
that give a true and fair view of the financial position, financial performance including
other comprehensive income, cash flows and changes in equity 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 Standalone Financial Statements that give a true
and fair view and are free from material misstatement, whether due to fraud or error. In
preparing the Standalone Financial Statements, the Management is responsible for assessing
the Companys 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
responsibleforoverseeingtheCompanysfinancialreporting . process
Auditors Responsibility for the Audit of the Standalone Financial Statements
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 auditors 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.
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 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 theoperating 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 managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are in our auditors 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 auditors 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.
Materiality is the magnitude of misstatements in the standalone financial statements
that, individually or in aggregate, makes it probable that the economic decisions of a
reasonably knowledgeable user of the standalone 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 standalone 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 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 standalone financial statements
for the year ended March 31, 2023 and are therefore the key audit matters. We describe
these matters in our auditors 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 (Auditors 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 standalone Balance Sheet, the standalone Statement of Profit and Loss
(including other comprehensive income), the standalone 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 standalone 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 March
31, 2023 taken on record by the Board of Directors, none of the directors is
disqualifiedas on March
31, 2023 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 toAnnexure
‘B. Our report expresses an unmodified opinion on the adequacy and operating
effectiveness of the Companys internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditors 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 does not have any pending litigations which would impact its financial position
ii. The Company did not have any long-term contracts including derivative contracts as at
31st March, 2023 iii. There has been 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
(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 identifiedin 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. The dividend declared or paid during the
year by the Company is in accordance with section 123 of the Act to the extent it applies
to payment of dividend. vi. As proviso to rule 3(1) of the Companies (Accounts) Rules,
2014 is applicable for the Company only with effect from 1 April 2023, reporting under
Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.
(h) With respect to the other matters to be included in the Auditors report in
accordance with the requirements of section 197(16) of the act, as amended:
In our opinion and to the best of our information and according to the explanations
given to us, the remuneration paid by the company to its directors during the year is in
accordance with the provision of section 197 of the Act.
FOR N.C. AGGARWAL & CO. Chartered Accountants Firm Registration No. 003273N
G. K. Aggarwal Partner PLACE: Gurugram M. No. 086622 DATED: 26th May, 2023
UDIN:23086622BGVJKJ5213
ANNEXURE – A TO THE AUDITORS REPORT
The annexure referred to in Independent Auditors Report to the members of HB
Portfolio Limited on the standalone financial statements for the year ended on 31st
March,2023, We Report that: 1. a. (A) The Company is maintaining proper records showing
full particulars, including quantitative details and situation of Property, Plant and
Equipment. The Company does not have any right of use assets. (B) The company does not
have intangible assets. b. As explained to us, the management during the year has
physically verified the Property, Plant and Equipment 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. c. The
Company does not have any immovable property. d. The Company has not revalued any of its
Property, Plant and Equipment during the year. e. There are no proceedings initiated or
are pending against the Company for holding any Benami property under the Prohibition of
Benami Property Transactions Act, 1988 and rules made thereunder. 2. a. The Company does
not have any inventory. Hence, the reporting requirement of para 3(ii)(a) of the order is
not applicable to the Company. b. No working capital limit has been sanctioned and availed
by the Company. Hence, the reporting requirement of para 3(ii)(b) of the order is not
applicable to the Company.
3. a. Since the principle business of the Company is to give loans and make
investments, the reporting requirement of para 3(iii)(a) is not applicable. b. In our
opinion and according to the information and explanations given to us, the investments
made, guarantees provided, security given and the terms and conditions of the grant of all
loans and advances in the nature of loans and guarantees, provided during the year are not
prejudicial to the Companys interest. c. The schedule of repayment of principal and
payment of interest has been stipulated for the loans granted and the repayment/receipts
are regular.
d. According to the information and explanations given to us and on the basis of our
examination of the records of the Company, there is no overdue amount for more than ninety
days in respect of loans given. e. Since the principle business of the Company is to give
loans and make investments, the reporting requirement of para 3(iii)(e) is not applicable.
f. The Company has not granted any loans or advances in the nature of loans, either
repayable on demand or without specifying any terms or period of repayment to companies,
firms,
Limited Liability Partnerships or any other parties. Accordingly, the requirement to
report on clause 3(iii)(f) of the Order is not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the
company has complied with the provision of section 185 and 186 of the Act, with respect to
the loans and investment made and guarantee given and security provided, to the extent
applicable to the Company.
5. The Company has neither accepted any deposits from the public nor accepted any
amount which are deemed to be deposits within the meaning of Sections 73 to 76 of the Act
and the rules made thereunder, to the extent applicable. Accordingly, the requirement to
report on clause 3(v) of the Order is not applicable to the Company.
6. The nature of the companys business/activities is such that maintenance of Cost
Records under section 148(1) of the Companies Act, 2013 is not applicable to the company.
7 a. According to the records of the Company, undisputed statutory dues including Goods
and Service Tax, Provident Fund, Employees State Insurance, Income Tax, Customs Duty,
Excise Duty, Value added 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, 2023 for a period of more than six months from the date of
becoming payable. b. According to the records of the Company, there are no disputed
statutory dues that have not been deposited on account of matters pending before
appropriate authorities.
8. There were no transactions relating to previously unrecorded income that have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961). Hence, the para 3(viii) of the order is not applicable to the
Company.
9 a) In our opinion and according to the information and explanations given to us, the
company has not defaulted in repayment of loan or other borrowing or in the payment of
interest thereon to any lender. b) The Company has not been declared wilful defaulter by
any bank or financial institution or government or any government authority. c) According
to the records of the Company examined by us and the information and explanation given to
us terms loans (vehicle loans) taken by the company were applied for the purpose for which
the loan were obtained. d) On an overall examination of the standalone financial
statements of the Company, no funds raised on short-term basis have been used for
long-term purposes by the Company. e) On the basis of books and records examined by us,
the Company has not taken any funds from any entity or person on account of or to meet the
obligation of its subsidiaries or associate. The Company does not have any joint venture.
f) On the basis of books and records examined by us and as explained to us, the Company
has not raised any loan during the year on the pledge of securities held in its
subsidiaries or associates.
10 a) The Company has not raised any money by way of initial public offer or further
public offer (including debt instruments). Hence, the para 3(x)(a) of the order is not
applicable to the Company. b) According to the information and explanations given to us
and based on our examination of the records of the Company, the Company has not made any
preferential allotment or private placement of shares or fully or convertible debentures
(fully, partly or optionally convertible) during the year. Accordingly, provisions of
clause 3 (xiv) of the Order are not applicable to the Company.
11. a) In our opinion and according to the information and explanation given to us, no
fraud by the company or on the Company has been noticed or reported during the course of
our audit. b) During the year no report under sub-section 12 of section 143 of the
Acthasbeenfiledin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors)
Rules, 2014 with the Central Government. c) No whistle blower complaints were received by
the Company during the year. Hence, the reporting para 3(xi)(c) of the order is not
applicable to the Company.
12. In our opinion and according to the information and explanations given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the order is not
applicable.
13. According to the information and explanations given to us and based on or
examinations of the records of the Company, transactions with the related parties are in
compliance with sections
177 and 188 of the Act where applicable and details of such transaction have been
disclosed in the financial statements as required by the applicable accounting standards.
14. a) In our opinion the company has an adequate internal audit system commensurate
with the size and the nature of its business. b) We have considered, the internal audit
reports for the year under audit, issued to the company during the year and till date, in
determining the nature, timing and extent of our audit procedures.
15. According to the information and explanations given to us and based on our
examination of the record of the Company, the Company has not entered into non-cash
transactions with directors or persons connected with its director. Accordingly, paragraph
3(xv) of the order is not applicable.
16. a) The Company had made application to Reserve Bank of India for registration under
Section 45-IA of the Reserve Bank of India Act, 1934 and the registration has not been
granted so far. (Refer note no. 34 of standalone financial statements). b) The Company has
conducted Non-Banking Financial activities and as stated in para (a) above, the company
had made application to Reserve Bank of India for registration under Section 45-IA of the
Reserve Bank of India Act, 1934 and the registration has not been granted so far. c) The
Company is not a Core Investment Company as defined in the regulations made by Reserve
Bank of India. Accordingly, the requirement to report on clause 3(xvi) of the Order is not
applicable to the Company. d) There is no Core Investment Company as a part of the Group.
Accordingly, the requirement to report on clause 3(xvi) of the Order is not applicable to
the Company.
17. The Company has not incurred cash losses in the current year. However, the Company
had cash losses of 42.83 Lakhs in the immediately preceding financial year. For the
purpose of reporting under this clause, the amount of ‘Other Comprehensive Income
has not been considered.
18. There has been no resignation of the statutory auditor during the year. Hence, the
reporting para 3(xviii) of the order is not applicable to the Company.
19. According to the information and explanations given to us and on the basis of the
financial ratios, ageing and expected dates of realization of financial assets and payment
of financial liabilities, other information accompanying the standalone financial
statements, the our knowledge of the Board of Directors and Management plans and based on
our examination of evidence supporting the assumptions, nothing has come to our attention,
which causes us to believe that any material uncertainty exists as on the date of the
audit report indicating that company is not capable of meeting its liabilities existing at
the date of balance sheet as and when they fall due within a period of one year from the
balance sheet date. We, however, state that this is not an assurance as to the future
viability of the Company. We further state that our reporting is based on the facts up to
the date to the audit report and we neither give any guarantee nor any assurance that all
liabilities falling due within a period of one year from the balance sheet date, will get
discharged by the Company and when they fall due.
20. In our opinion and according to the information and explanations given to us, there
is no unspent amount under sub-section (5) of Section 135 of the Companies Act, 2013
pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not
applicable.
FOR N.C. AGGARWAL & CO. Chartered Accountants Firm Registration No. 003273N
G. K. Aggarwal Partner PLACE: Gurugram M. No. 086622 DATED: 26th May, 2023
UDIN:23086622BGVJKJ5213
ANNEXURE – B TO THE AUDITORS REPORT
Report on the Internal Financial Control under clause (i) of sub section 3 of section
143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reportingof HB
Portfolio Limited ("the Company") as of 31st March 2023 in
conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (‘ICAI). These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting based on our audit. We conducted our audit 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 deemed
to be prescribed under section 143(10) of the
Companies Act, 2013, to the extent applicable to an audit of internal financial
controls, both applicable to an audit of Internal Financial Controls and, both issued by
the Institute of Chartered
Accountants of India. Those Standards and the Guidance Note require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects. Our audit
involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our
audit of internal financial controls over financial reporting included obtaining an
understanding ofinternal financialreporting, assessing the risk that a material
weakness exists, and controlsover testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. The procedures selected
depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. We believe that
the audit evidence we have obtained is sufficientand appropriate to provide a basis for
our audit opinion on the Companys internal financial controls system over
financialreporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, including the possibility of collusion or improper management override of
controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting may become inadequatebecause of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial operating effectively as at 31 March 2023, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
FOR N.C. AGGARWAL & CO. Chartered Accountants Firm Registration No. 003273N
G. K. Aggarwal Partner PLACE: Gurugram M. No. 086622 DATED: 26th May, 2023
UDIN:23086622BGVJKJ5213
+91-9892691696
