Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying financial statements of GIC Housing Finance Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134 (5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these financial statements to 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 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 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.
Auditorâs 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 thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. 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 auditorâs 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 Companyâs preparation of the financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs 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 March 31, 2018, 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 (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government in terms of Section 143 (11) of the Act (hereinafter referred to as the âOrderâ), 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 statement on the matters specified in paragraphs 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 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 Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of section 164 (2) of the Act.
f) With respect to adequacy of the internal financial controls with reference to financial statement of the company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Aâ.
g) With respect to the other matters to be included in the Auditorâs 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 on its financial position in its financial statements - Refer Note 24(2) 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 as at March 31, 2018.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2018.
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the financial statements for the year ended 31 March 2018, we report that:
i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets
(b) The fixed assets of the Company have been physically verified by the Management during the year. The discrepancies noticed on such verification are not material and have been properly dealt with in the books of accounts. In our opinion, the frequency of verification is reasonable.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii) The Company is in the business of rendering services, and consequently, does not hold any inventory. Therefore, the provisions of clause 3(ii) of the said Order are not applicable to the Company.
iii) According to the information and explanations given to us, during the year the Company has not granted any loans, secured or unsecured to Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore, the provision of Clause 3(iii)(a) of the said order is not applicable to the Company.
(b) In case of the Housing loan granted in the earlier financial year to a party listed in the registered maintained under Section 189 of the Act, the borrower is regular in the payment of the principal and interest as stipulated.
(c) There is no overdue amount for more than ninety days in respect of the Housing loan granted in the earlier financial year to a party listed in the register maintained under Section 189 of the Act.
iv) The Company has not advanced any loan or given any guarantee or provided any security or made any investment covered under section 185 and 186 of the Act. Consequently, requirements of clause (iv) of paragraph 3 of the order are not applicable.
v) According to the information and explanations given to us, Company has not accepted any deposits to which directives of National Housing Bank and provisions of section 73 to 76 or other relevant provisions of the Companies Act, 2013 and rules framed thereunder apply. Accordingly, the provisions of clause 3(v) of the said Order are not applicable to the Company.
vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the services rendered by the Company.
vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, Employeeâs State Insurance, income-tax, sales tax, value added tax, cess, duty of customs, service tax, cess and other material statutory dues applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of outstanding statutory dues were in arrears as at March 31, 2018 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, and value added tax which have not been deposited with the appropriate authorities on account of any dispute.
viii) According to the records of the company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to a financial institution, bank, National Housing Bank or debenture holders during the year.
ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. According to the information and explanations provided to us the Company has applied term loans for the purpose for which the loans were obtained
x) According to the information and explanations given to us and best of our knowledge, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii) 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.
xiii) According to the information and explanations given to us and based on our examination 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 transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) 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 partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable.
xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi) The company is a Non-Banking Financial Institution; however it has been exempted from the requirement of registration under section 45 IA of the Reserve Bank of India Act, 1934. Since, the Company is registered under National Housing Bank (NHB) Act, 1987 and regulated by the directions issued by the National Housing Bank.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls with reference to financial statements of GIC Housing Finance Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls with reference to financial statements
The Companyâs management is responsible for establishing and maintaining internal financial controls with reference to financial statements based on âthe 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)â. These responsibilities include the design, implementation and maintenance of adequate internal financial controls with reference to financial statements that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs 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 underthe Act.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls with reference to financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) 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 with reference to financial statements. 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 with reference to financial statements 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 with reference to financial statements and their operating effectiveness. Our audit of internal financial controls with reference to financial statements included obtaining an understanding of internal financial controls with reference to financial statements , assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs 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 sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system with reference to financial statements.
Meaning of Internal Financial Controls with reference to financial statements
A companyâs internal financial control with reference to financial statements 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 Companyâs internal financial control with reference to financial statements 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 authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls with reference to financial statements
Because of the inherent limitations of internal financial controls with reference to financial statements , 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 with reference to financial statements to future periods are subject to the risk that the internal financial control with reference to financial statements may become inadequate because 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 with reference to financial statements and such internal financial controls with reference to financial statements were operating effectively as at March 31, 2018, based on the internal control with reference to financial statements 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 C N K & Associates LLP
Chartered Accountants
Firm Registration No.: 101961W/W-100036
Manish Sampat
Place: Mumbai Partner
Date: April 24, 2018 Membership No. 101684
Mar 31, 2017
To the Members of GIC Housing Finance Limited Report on the Financial Statements
We have audited the accompanying financial statements of GIC Housing Finance Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the 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 of these financial statements to 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 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 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 and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India. 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. 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 March 31, 2017, and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
We draw attention to Note No. 24(9) to the financial statements, which describes the accounting treatment of the expenditure on creation of Deferred Tax Liability on Special Reserves under Section 36(1)(viii) of the Income Tax Act, 1961 as at March 31, 2017, pursuant to NHB''s Circular No. NHB (ND)/DRS/Policy Circular No. 65/2014-15 dated August 22, 2014. Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143 (11) of the Act (hereinafter referred to as the "Order"), 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 statement on the matters specified in paragraphs 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 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 Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in "Annexure A".
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 on its financial position in its financial statements - Refer Note 24(2) 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 as at March 31, 2017.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31, 2017.
iv. The Company has provided requisite disclosures in the financial statements as to holdings as well as dealings in Specified Bank Notes (SBN''s) during the period from November 8, 2016 to December 30, 2016. Based on audit procedures and relying on the Management Representation we report that the disclosures are in accordance with books of accounts maintained by the Company and as produced to us by the Management - Refer Note 24(13) to the financial statements.
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the financial statements for the year ended 31 March 2017, we report that:
i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The fixed assets of the Company have been physically verified by the Management during the year. The discrepancies noticed on such verification are not material and have been properly dealt with in the books of accounts. In our opinion, the frequency of verification is reasonable.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii) The Company is in the business of rendering services, and consequently, does not hold any inventory. Therefore, the provisions of clause 3(ii) of the said Order are not applicable to the Company.
iii) According to the information and explanations given to us, during the year the Company has not granted any loans, secured or unsecured to Companies, Firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Therefore, the provision of Clause 3(iii)(a) of the said order is not applicable to the Company. One party to whom loan was given in the earlier financial year is ceased to be covered under Section 189 of the Companies Act, 2013.
(b) In case of the loan granted in the earlier financial year to a party listed in the register maintained under Section 189 of the Act, the borrower is regular in the payment of the principal and interest as stipulated.
(c) There is no overdue amount for more than ninety days in respect of the loan granted in the earlier financial year to a party listed in the register maintained under Section 189 of the Act.
iv) The Company has not advanced any loan or given any guarantee or provided any security or made any investment covered under Sections 185 and 186 of the Act. Consequently, requirements of clause (iv) of paragraph 3 of the order are not applicable.
v) According to the information and explanations given to us, Company has not accepted any deposits to which directives of National Housing Bank and provisions of sections 73 to 76 or other relevant provisions of the Companies Act, 2013 and rules framed there under apply. Accordingly, the provisions of clause 3(v) of the said Order are not applicable to the Company.
vi) The Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act, for any of the services rendered by the Company.
vii) (a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund,
Employee''s State Insurance, income-tax, sales tax, value added tax, cess, duty of customs, service tax, cess and other material statutory dues applicable to it. According to the information and explanations given to us, no undisputed amounts payable in respect of outstanding statutory dues were in arrears as at March 31, 2017 for a period of more than six months from the date they became payable.
(b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, and value added tax which have not been deposited with the appropriate authorities on account of any dispute.
viii) According to the records of the company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowings to a financial institution, bank, Government or debenture holders during the year.
ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. According to the information and explanations provided to us the Company has applied term loans for the purpose for which the loans were obtained.
x) According to the information and explanations given to us, except for a fraud by an employee of the Company, which is under investigation; no fraud by the Company or on the Company by its other officers or employees has been noticed or reported during the course of our audit.
xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) 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.
xiii) According to the information and explanations given to us and based on our examination 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 transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv) 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 partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable.
xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi) The Company is a Non-Banking Financial Institution; however it has been exempted from the requirement of registration under Section 45 IA of the Reserve Bank of India Act, 1934. Since, the Company is registered under National Housing Bank (NHB) Act, 1987 and regulated by the directions issued by the National Housing Bank.
For CNK & Associates LLP
Chartered Accountants
Firm Registration No.: 101961W/W-100036
Suresh S. Agaskar
Place: Mumbai Partner
Date: 26th April, 2017 Membership No. 110321
Mar 31, 2016
We have audited the accompanying financial statements of GIC Housing
Finance Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2016, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
Accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors are responsible for the maters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements to give a true and
fair view of the financial position, financial performance and cash
fows 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 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 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 maters 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 and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. 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 judgments, 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. 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, 2016, and its Profit and its cash fows for the year
ended on that date.
Emphasis of Mater
We draw attention to Note No. 25(11) to the financial statements, which
describes the Accounting treatment of the expenditure on creation of
Deferred Tax Liability on Special Reserves under Section 36(1)(viii) of
the Income Tax Act, 1961 as at 31st March, 2016, pursuant to NHB''s
Circular No. NHB (ND)/DRS/Policy Circular No. 65/2014-15 dated 22nd
August, 2014. Our opinion is not qualified in respect of this mater.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government in terms of Section 143 (11)
of the Act (hereinafter referred to as the "Order"), 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 statement on the maters specified in
paragraphs 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 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 Companies Act,
2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on 31st March, 2016, and taken on record by the Board of Directors,
none of the directors are disqualified as on 31st March, 2016, from
being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to adequacy of the internal financial controls over
financial reporting of the company and the operating effectiveness of
such controls, refer to our separate Report in "Annexure A".
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 on its
financial position in its financial statements  Refer Note 25(2) 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 as at 31st March, 2016.
iii. There has been no delay in transferring amounts required to be
transferred to the Investor Education and Protection Fund by the
Company during the year ended 31st March, 2016.
The Annexure referred to in Independent Auditors'' Report to the members
of the Company on the financial statements for the year ended 31st
March, 2016, we report that:
i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The fixed assets of the Company have been physically verified by
the Management during the year and no material discrepancies have been
noticed on such verification. In our opinion, the frequency of
verification is reasonable.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the title
deeds of immovable properties are held in the name of the Company.
ii) The Company is in the business of rendering services, and
consequently, does not hold any inventory. Therefore, the provisions of
Clause 3(ii) of the said Order are not applicable to the Company.
iii) According to the information and explanations given to us, the
Company has granted secured housing loans to two parts covered in the
register maintained under Section 189 of the Companies Act, 2013.
(a) In our opinion, the rate of interest and other terms and conditions
on which the loans had been granted to the parts listed in the register
maintained under Section 189 of the Act were not, prima facie,
prejudicial to the interest of the Company.
(b) In the case of the loans granted to the partes listed in the
register maintained under Section 189 of the Act, the borrowers have
been regular in the payment of the principal and interest as
stipulated.
(c) There are no overdue amounts for more than ninety days in respect
of the loan granted to partes listed in the register maintained under
Section 189 of the Act.
iv) The Company has not advanced any loan or given any guarantee or
provided any security or made any investment covered under Sections 185
and 186 of the Act. Consequently, requirements of Clause (iv) of
paragraph 3 of the order are not applicable.
v) According to the information and explanations given to us, Company
has not accepted any deposits to which directives of Reserve Bank of
India and provisions of Sections 73 to 76 or other relevant provisions
of the Companies Act, 2013 and rules framed there under apply.
Accordingly, the provisions of Clause 3(v) of the said Order are not
applicable to the Company.
vi) The Central Government has not prescribed the maintenance of cost
records under Section 148(1) of the Act, for any of the services
rendered by the Company.
vii) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
Employee''s State Insurance, income-tax, sales tax, value added tax,
cess, duty of customs, service tax, cess and other material statutory
dues applicable to it. According to the information and explanations
given to us, no undisputed amounts payable in respect of outstanding
statutory dues were in arrears as at 31st March, 2016 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues of income tax, sales tax, service tax, duty of customs,
duty of excise, and value added tax which have not been deposited with
the appropriate authorities on account of any dispute.
viii) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of loans or borrowings to a financial institution, bank,
Government or debenture holders during the year.
ix) The Company did not raise any money by way of initial public offer
or further public offer (including debt instruments) during the year.
According to the information and explanations provided to us the
Company has applied term loans for the purpose for which the loans were
obtained.
x) According to the information and explanations given to us, no fraud
by the Company or on the Company by its officers or employees has been
noticed or reported during the course of our audit.
xi) According to the information and explanations given to us and based
on our examination of the records of the Company, the Company has
paid/provided for managerial Remuneration in accordance with the
requisite approvals mandated by the provisions of Section 197 read with
Schedule V to the Act.
xii) 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.
xiii) According to the information and explanations given to us and
based on our examination of the records of the Company, Transactions
with the related partes are in compliance with Sections 177 and 188 of
the Act where applicable and details of such Transactions have been
disclosed in the financial statements as required by the applicable
Accounting standards.
xiv) 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 partly convertible debentures during the year. Accordingly,
paragraph 3(xiv) of the Order is not applicable.
xv) According to the information and explanations given to us and based
on our examination of the records of the Company, the Company has not
entered into non-cash Transactions with directors or persons connected
with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi) The Company is a Non-Banking Financial Institution; however it has
been exempted from the requirement of registration under Section 45 IA
of the Reserve Bank of India Act, 1934. Since, the Company is
registered under National Housing Bank (NHB) Act, 1987 and regulated by
the directions issued by the National Housing Bank.
For CNK & Associates LLP
Chartered Accountants
Firm Registration No.: 101961W
(Suresh S. Agaskar)
Date: 29th April, 2016 Partner
Place: Mumbai Membership No. 110321
Mar 31, 2015
We have audited the accompanying financial statements of GIC Housing
Finance Limited ("the Company"), which comprise the Balance Sheet
as at March 31,2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors are responsible for the matters stated
in Section 134 (5) of the Companies Act, 2013 ("the Act") with
respect to the preparation of these financial statements to 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 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 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
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by the Institute of Chartered
Accountants of India. 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 March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Emphasis of Matter
We draw attention to Note No. 26(12) to the financial statements, which
describes the accounting treatment of the expenditure on creation of
Deferred Tax Liability on Special Reserves under section 36(1)(viii) of
the Income Tax Act, 1961 as at March 31, 2015, pursuant to NHB''s
Circular No. NHB(ND)/DRS/Policy Circular No. 65/2014-15 dated 22nd
August 2014. Our opinion is not qualified in respect ofthis matter.
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 in terms of Section 143 (11) of
the Act (hereinafter referred to as the "Order"), 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 statement on the matters specified in
paragraphs 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 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 Companies Act,
2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of written representations received from the directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the directors are disqualified as on March 31, 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 does not have any pending litigations as at March
31,2015 which would impact its financial position.
ii. The company did not have any long term contracts including
derivative contracts as at March 31, 2015.
iii. There has been no delay in transferring amounts required to be
transferred to the Investor Education and Protection Fund by the
Company during the year ended March 31, 2015 except for a sum ofRs. 0.56
Lac which has not been deposited as on the balance sheet date.
ANNEXURE TO THE INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph 1 under ''Report on Other Legal and Regulatory
Requirements'' section of Independent Auditors'' Report of even date to
the members of GIC Housing Finance Limited)
i. In respect offixed assets
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. The fixed assets of the Company have been physically verified by the
Management during the year and no material discrepancies have been
noticed on such verification. In our opinion, the frequency
ofverification is reasonable.
ii. The company does not have any inventory. Accordingly, the
provisions of clause 3 (ii) are not applicable to the Company.
iii. According to the information and explanations provided to us, the
Company has granted secured housing loans to parties covered in the
register maintained under section 189 of the Companies Act, 2013.
a. The parties have been regular in payment of Equated Monthly
Installment (EMI), recovering the amount of principal and interest due
to the Company.
b. There is no overdue amount in excess of Rs. 1 Lac in respect of loans
granted to parties listed in the Register maintained under Section 189
of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets and for sale of
services. The nature of the Company''s business is such that it does not
involve purchase and sale of goods. Further , on the basis of our
examination of the books and records of the Company, and according to
the information and explanations given to us, we have neither come
across, nor have been informed of, any continuing failure to correct
major weaknesses in the aforesaid internal control system
v. According to the information and explanations provided to us, the
Company has not accepted any deposits to which directives of the
Reserve Bank of India and provisions of sections 73 to 76 or any other
relevant provisions of the Act and the rules framed there under apply.
Accordingly, the provisions of clause 3 (v) of the Order are not
applicable to the Company.
vi. The Company is not engaged in production, manufacturing or mining
activities and hence, the provisions of clause 3 (vi) of the Order are
not applicable.
vii. According to the information and explanations provided to us and
the records of the Company examined by us, in our opinion.
a. The Company is generally regular in depositing undisputed statutory
dues, as applicable, including provident fund, employees'' state
insurance, income-tax, sales-tax, wealth tax, service tax, duty of
customs, duty of excise, value added tax, cess and any other material
statutory dues with the appropriate authorities. There were no
undisputed amounts payable with respect to provident fund, employees''
state insurance, income-tax, sales-tax, wealth tax, service tax, duty
of customs, duty of excise, value added tax, cess and any other
statutory dues in arrears as at March 31, 2015 for a period of six
months from the date they became payable.
b. According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of income-tax,
sales-tax, wealth-tax, service-tax, duty of customs, and duty of excise
or value added tax or cess which have not been deposited on account of
any dispute .
c. The amount required to be transferred to Investor Education and
Protection Fund has been transferred within the stipulated time in
accordance with the provisions of the Companies Act, 1956 and the rules
made there under except for a sum of Rs. 0.56 lac which has not been
transferred by the Company as on the balance sheet date.
viii. The Company has no accumulated losses as at the end of the
financial year and it has not incurred any cash losses in the financial
year ended on that date or in the immediately preceding financial year.
ix. According to the information and explanations provided to us and
records examined by us the Company has not defaulted in repayment of
dues to financial institutions, banks or debenture holders as at the
balance sheet date.
x. According to the information and explanations provided to us the
Company has not given any guarantee for loans taken by others from
banks or financial institutions during the year. Accordingly, the
provisions of the clause 3 (x) of the Order are not applicable to the
Company.
xi. According to the information and explanations provided to us the
Company has applied term loans for the purpose for which the loans were
obtained.
xii. During the course of our examination of the books and records of
the Company, carried out in accordance with the generally accepted
auditing practices in India, and according to the information and
explanations given to us, we have neither come across any instance of
material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the Management, except
for the following cases of fraud on the Company;
a. by four borrowers aggregating to Rs. 86.01 lacs where the borrowers
have fraudulently represented the facts and borrowed the money for
housing loans, for which Management has taken appropriate steps and
made appropriate provision on account of these frauds; and
b. by two employees estimating to Rs. 26.09 lacs, wherein the employees
have misappropriated the funds of the Company, for which the Management
has taken appropriate steps.
For CNK & Associates LLP
Chartered Accountants
Firm Registration No.: 101961W
(Suresh S. Agaskar)
Place : Mumbai Partner
Date : 6th May, 2015 Membership No.110321
Mar 31, 2014
We have audited the accompanying financial statements of GIC Housing
Finance Limited ("the Company"), which comprise the Balance Sheet as at
March 31,2014 and 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
Management is responsible for the preparation 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013. This
responsibility includes the design, implementation and maintenance of
internal control 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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss , of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have 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 Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956 read
with the General Circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of Section 133 of the
Companies Act, 2013;
(e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
As required by the Companies'' (Auditors'' Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1 (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of the fixed
assets;
(b) As per the information and explanations given to us, the management
carries out the physical verification of the fixed assets at reasonable
intervals. No material discrepancies were noticed on such verification.
(c) No significant fixed assets have been disposed of by the company
during the year and the question of effect on the going concern of the
Company does not arise.
2. Since the company is engaged in providing housing finance, the
clauses relating to stock-in-trade are not applicable.
3. (a) The Company has not granted nor taken any loans, secured or
unsecured, to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956 and therefore
the provisions of Clauses (3)(b), (3)(c), (3) (d), (3)(e), (3)(f) of
the Order are not applicable
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets and for sale of
services. The nature of the Company''s business is such that it does not
involve purchase and sale of goods. During the course of our audit, we
have not observed any continuing failure to correct major weaknesses in
internal controls.
5. (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered in the register
maintained under Section 301 of the Companies Act 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under Section 301 and
exceeding the value of five lakh rupees in respect of any party during
the year are reasonable having regard to the prevailing market prices
at the relevant time.
6. The Company has not accepted deposits from the public and therefore
the question of compliance with the provisions of Sections 58A and 58AA
or any other relevant provisions of the Companies Act, 1956 and rules
made there under for the deposits accepted from the public does not
arise.
7. In our opinion, the Company''s internal audit system is commensurate
with the size and nature of its business.
8. Since the company is in the services sector, the question of
maintaining cost records u/s 209(1)(d) of the Companies Act, 1956 does
not arise.
9. (a) According to the information and explanations given to us and
the records examined by us, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employee''s state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and any other statutory dues with
the appropriate authorities and there are no undisputed statutory dues
outstanding as at 31st March 2014, for a period of more than six months
from the date they became payable.
(b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
10. The company does not have accumulated losses as on 31st March 2014
nor has incurred cash losses in the immediately preceding financial
year. The Company has not incurred any cash loss during the financial
year.
11. The company has not defaulted in repayment of dues to financial
institutions or banks.
12. Based on our examination of the records and the information and
explanations given to us, the Company has maintained adequate documents
and records for housing loans granted by it on the basis of security
offered by the borrower.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society.
14. The Company has maintained proper records and timely entries are
being made in respect of its dealing in units of mutual funds. All
investments in mutual funds and shares have been held by the Company in
its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the term
loans were applied for the purpose for which the loans were obtained.
17. According to the information and explanation given to us and on
overall examination of the Balance Sheet of the company, we report that
funds of Rs. 468.02 Crores raised on short-term basis by the Company
have been utilized for disbursement of
18. According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year, to parties and companies covered in the register maintained under
section 301 of the Companies Act 1956, Therefore the question of
pricing of shares does not arise.
19. During the year, the Company has not issued any secured debentures,
and therefore the question of creation of security does not arise.
20. The Company has not raised any money by public issues during the
year covered by our report and therefore the question of end use
thereof does not arise.
21. According to information & explanation provided to us, no fraud by
the company has been noticed or reported during the year. As regards
fraud on the company during the year, we have observed one case of
fraud committed by the borrower by providing deceptive documentation
and dishonest representation amounting to Rs.15.69 lacs. The company
has initiated investigation in this case, and has made the necessary
provision on account of such fraud.
For CNK & Associates LLP
Chartered Accountants
ICAI Firm Reg. No. 101961W
Place: Mumbai
Date : 7th May, 2014 (Suresh S. Agaskar)
Partner
Membership No. 110321
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fi nancial statements of GIC Housing
Finance Limited ("the CompanyÂ), which comprise the Balance Sheet as at
March 31,2013 and the Statement of Profi t and Loss and Cash Flow
Statement for the year then ended, and a summary of signifi cant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these fi nancial
statements that give a true and fair view of the fi nancial position,
fi nancial performance and cash fl ows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 ("the ActÂ). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the fi nancial
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 fi nancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fi nancial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the fi nancial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fi nancial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the fi nancial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the fi nancial statements. We believe that the
audit evidence we have obtained is suffi cient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the fi nancial 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:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profi t and Loss, of the profi t
for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash fl ows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
OrderÂ) issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure
statement on the matters specifi ed in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have 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 Profi t and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profi t and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualifi ed as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
As required by the Companies'' (Auditors'' Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1 (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of the fi xed
assets;
(b) As per the information and explanations given to us, the management
carries out the physical verifi cation of the fi xed assets at
reasonable intervals. No material discrepancies were noticed on such
verifi cation.
(c) No signifi cant fi xed assets have been disposed of by the company
during the year and the question of effect on the going concern of the
Company does not arise.
2. Since the company is engaged in providing housing fi nance, the
clauses relating to stock-in-trade are not applicable.
3 (a) During the year the company has not granted any loans to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956. However in the earlier year housing loan was given
to Managing Director. The maximum amount involved and the yearend
balance of this loan is Rs.23.85 lakhs (Previous Year Rs.25 lakhs) and
Nil (Previous Year Rs.23.85 lakhs) respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of
such loan are not, prima facie, prejudicial to the interest of the
company.
(c) As per the terms and conditions of the loan, the company has
received payment of interest and principal amount regularly.
(d) There is no overdue amount in excess of Rs.1 lakh in respect of
housing loan granted to Managing Director of the company, or other
party covered in the register maintained under section 301 of the
Companies Act, 1956.
(e) As per the information furnished, the Company has not accepted
loans from companies, fi rms or other parties covered in the register,
maintained under section 301 of the Companies Act, 1956. Accordingly
clauses (f) and (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of fi xed assets and for sale of
services. The nature of the Company''s business is such that it does not
involve purchase and sale of goods. During the course of our audit, we
have not observed any major weakness in such internal control system.
5 (a) Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered in the register
maintained under Section 301 of the Companies Act 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, except for housing loan given to Managing Director, there
is no other transaction made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act 1956 and aggregating to Rs.5 lakhs or more in respect of each party
during the year. The terms of and interest on such loan are in
accordance with the company policy in respect of Employees Housing
Loans.
6. The Company has not accepted deposits from the public and therefore
the question of compliance with the provisions of Sections 58A and 58AA
or any other relevant provisions of the Companies Act, 1956 and rules
made there under for the deposits accepted from the public does not
arise.
7. In our opinion, the Company''s internal audit system is commensurate
with the size and nature of its business.
8. Since the company is in the services sector, the question of
maintaining cost records u/s 209(1)(d) of the Companies Act, 1956 does
not arise.
9. (a) According to the information and explanations given to us and
the records examined by us, the Company is regular in
depositing with appropriate authorities undisputed statutory dues
including provident fund, investor education and protection fund,
employee''s state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and any other statutory dues with
the appropriate authorities and there are no undisputed statutory dues
outstanding as at 31st March 2013, for a period of more than six months
from the date they became payable.
(b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
10. The company has no accumulated losses as on 31st March 2013 and no
cash losses in the immediately preceding fi nancial year. The Company
has not incurred any cash loss during the fi nancial year.
11. The company has not defaulted in repayment of dues to fi nancial
institutions or banks.
12. Based on our examination of the records and the information and
explanations given to us, the Company has maintained adequate documents
and records for housing loans granted by it on the basis of security
offered by the borrower.
13. The Company is not a chit fund, nidhi, mutual benefi t fund or a
society.
14. The Company has maintained proper records and timely entries are
being made in respect of its dealing in units of mutual funds. All
investments in mutual funds and shares have been held by the Company in
its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or fi nancial institutions.
16. According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
17. According to the information and explanation given to us and on
overall examination of the Balance Sheet of the company, we report that
funds of Rs.394.37 Crore raised on short-term basis by the Company have
been utilized for disbursement of housing loans.
18. According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year, to parties and companies covered in the register maintained under
section 301 of the Companies Act 1956. Therefore the question of
pricing of shares does not arise.
19. According to information and explanation given to us, during the
year the company has issued 1,150 Non-Convertible Debentures of
Rs.10,00,000 Each. The company has created charge in respect of
debentures issued.
20. The Company has not raised any money by public issues during the
year covered by our report and therefore the question of end use
thereof does not arise.
21. According to information & explanation provided to us, no fraud by
the company has been noticed or reported during the year. As regards
fraud on the company during the year, one case of fraud committed by an
employee has been reported and the matter is under investigation.
For Contractor, Nayak & Kishnadwala
Chartered Accountants
Firm Registration No. 101961W
Suresh S. Agaskar
Place : Mumbai Partner
Date : 10th May,2013 Membership No. 110321
Mar 31, 2012
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. Audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Audit also includes assessing
the accounting principles used and significant estimates made by
management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report that:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
2. In our opinion, proper books of account, as required by law, have
been kept by the company in so far as appears from our examination of
those books;
3. In our opinion, proper returns adequate for the purpose of our
audit have been received from service centers not visited by us.
4. 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;
5. In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the Mandatory
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
6. On the basis of written representations received from the
directors, as on 31st March 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
7. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes forming part of it, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012,
b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date, and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS' REPORT
As required by the Companies' (Auditors' Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1. (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of the fixed
assets;
(b) As per the information and explanations given to us, the management
carries out the physical verification of the fixed assets at reasonable
intervals. No material discrepancies were noticed on such verification.
(c) No significant fixed assets have been disposed of by the company
during the year and the question of effect on the going concern of the
Company does not arise.
2. Since the company is engaged in providing housing finance, the
clauses relating to stock-in-trade are not applicable.
3. (a) The company has granted housing loan to its Managing Director,
who is covered in the register maintained under section 301 of the
Companies Act, 1956. The maximum amount involved and the year end
balance of this loan is Rs.25 lakhs (Previous Year Rs. 15 lakhs) and
Rs.23.85 lakhs (Previous Year Rs. 15 lakhs) respectively.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of
such loan are not, prima facie, prejudicial to the interest of the
company.
(c) As per the terms and conditions of the loan, the company has
received payment of interest and principal amount regularly.
(d) There is no overdue amount in excess of Rs. 1 lakh in respect of
housing loan granted to Managing Director of the company, or other
party covered in the register maintained under section 301 of the
Companies Act, 1956.
(e) As per the information furnished, the Company has not accepted
loans from companies, firms or other parties covered in the register,
maintained under section 301 of the Companies Act, 1956. Accordingly
clauses (f) and (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets and for sale of
services. The nature of the Company's business is such that it does not
involve purchase and sale of goods. During the course of our audit, we
have not observed any major weakness in such internal control system.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, we are of
the opinion that the transactions that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, except for housing loan given to Managing Director, there
is no other transaction made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act, 1956 and aggregating to Rs. 5 lakhs or more in respect of each
party during the year. The terms of and interest on such loan are in
accordance with the company policy in respect of Employees Housing
Loans.
6. The Company has not accepted deposits from the public and therefore
the question of compliance with the provisions of Sections 58A and 58AA
or any other relevant provisions of the Companies Act, 1956 and rules
made there under for the deposits accepted from the public does not
arise.
7. In our opinion, the Company's internal audit system is commensurate
with the size and nature of its business.
8. Since the company is in the services sector, the question of
maintaining cost records u/s 209(1 )(d) of the Companies Act, 1956 does
not arise.
9. (a) According to the information and explanations given to us and
the records examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employee's state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and any other statutory dues with the appropriate
authorities and there are no undisputed statutory dues outstanding as
at 31st March 2012, for a period of more than six months from the date
they became payable.
(b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
10. The company has no accumulated losses as on 31st March 2012 and no
cash losses in the immediately preceding financial year. The Company
has not incurred any cash loss during the financial year.
11. The company has not defaulted in repayment of dues to financial
institutions or banks.
12. Based on our examination of the records and the information and
explanations given to us, the Company has maintained adequate documents
and records for housing loans granted by it on the basis of security
offered by the borrower.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society.
14. The Company has maintained proper records and timely entries are
being made in respect of its dealing in units of mutual funds. All
investments in mutual funds and shares have been held by the Company in
its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on
overall examination of the Balance Sheet of the Company, we are of the
opinion that there are no funds raised on short-term basis that have
been used for long term investment.
18. According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year, to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956 therefore the question of
pricing of shares does not arise.
19. The Company has not issued any secured debentures, and therefore
the question of creation of security does not arise.
20. The Company has not raised any money by public issues during the
year covered by our report and therefore the question of end use
thereof does not arise.
21. According to the information and explanations given to us and
based on our verification of the books of accounts and records, in our
view no fraud by the Company and no material fraud on the company have
been noticed or reported during the year.
For and on behalf of
Contractor, Nayak & Kishnadwala
Chartered Accountants
ICAI Firm Registration No.101961W
Suresh Agaskar
Place: Mumbai Partner
Date : 8,th May, 2012 Membership No.110321
Mar 31, 2011
We have audited the attached Balance Sheet of GIC Housing Finance
Limited (the Company), as at 31st March 2011 and also the Profit and
Loss Account and the Cash Flow Statement for the year ended 31st March
2011, annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. Audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Audit also includes assessing
the accounting principles used and significant estimates made by
management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report that:
1 We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
2. In our opinion, proper books of account, as required by law, have
been kept by the company in so far as appears from our examination of
those books;
3. In our opinion, proper returns adequate for the purpose of our
audit have been received from service centers not visited by us.
4. The Balance Sheet, Profit and Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
5. In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report comply with the Mandatory
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956;
6. On the basis of written representations received from the
directors, as on 31st March 2011, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
7. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes forming part of it, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011,
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date, and
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
As required by the Companies (Auditors Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1 (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of the fixed
assets;
(b) As per the information and explanations given to us, the management
carries out the physical verification of the fixed assets at reasonable
intervals. No material discrepancies were noticed on such verification.
(c) No significant fixed assets have been disposed of by the company
during the year and the question of effect on the going concern of the
Company does not arise.
2 Since the company is engaged in providing housing finance, the
clauses relating to stock-in-trade are not applicable.
3 (a) The company has granted housing loan to its Managing Director,
who is covered in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved and the year end balance of this loan is Rs.15 lakhs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of
such loan are not, prima facie, prejudicial to the interest of the
company.
(c) As per the terms and conditions of the loan, the company has
received payment of interest regularly. The principal amount is not yet
due for repayment.
(d) There is no overdue amount in excess of Rs. 1 lakh in respect of
housing loan granted to Managing Director of the company, or other
party covered in the register maintained under section 301 of the
Companies Act, 1956.
(e) As per the information furnished, the Company has not accepted
loans from companies, firms or other parties covered in the register,
maintained under section 301 of the Companies Act 1956. Accordingly
clauses (f) and (g) are not applicable to the company.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of fixed assets. During the course of
our audit, no major weakness has been noticed in the internal control
system and there is no continuing failure for the same.
5 (a) Based on the audit procedures applied by us and according to the
information and explanations provided
by the management, we are of the opinion that the transactions that
need to be entered in the register maintained under Section 301 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, except for housing loan given to Managing Director, there
is no other transaction made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act 1956 and aggregating to Rs. 5 lakhs or more in respect of each
party during the year. The terms of and interest on such loan are in
accordance with the company policy in respect of Employees Housing
Loans.
6 The Company has not accepted deposits from the public and therefore
the question of compliance with the provisions of Sections 58A and 58AA
or any other relevant provisions of the Companies Act, 1956 and rules
made there under for the deposits accepted from the public does not
arise.
7 In our opinion, the Companys internal audit system is commensurate
with the size and nature of its business.
8 Since the company is in the services sector, the question of
maintaining cost records u/s 209(l)(d) of the Companies Act, 1956 does
not arise.
9 (a) According to the information and explanations given to us and the
records examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income tax, sales tax, wealth tax, service tax, custom duty,
excise duty, cess and any other statutory dues with the appropriate
authorities and there are no undisputed statutory dues outstanding as
at 31st March 2011, for a period of more than six months from the date
they became payable.
(b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
10. The company has no accumulated losses as on 31st March 2011 and no
cash losses in the immediately preceding financial year. The Company
has not incurred any cash loss during the financial year.
11. The company has not defaulted in repayment of dues to financial
institutions or banks.
12. Based on our examination of the records and the information and
explanations given to us, the Company has maintained adequate documents
and records for housing loans granted by it on the basis of security
offered by the borrower.
13. The Company is not a chit fund, nidhi, mutual benefit fund or a
society.
14. The Company has maintained proper records and timely entries are
being made in respect of its dealing in units of mutual funds. All
investments in mutual funds and shares have been held by the Company in
its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16. According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that funds of Rs. 282.40 Crore raised on short-term basis by the
Company have been utilised for disbursement of housing loans.
18. According to the information and explanations given to us, the
company has not made any preferential allotment of shares during the
year, to parties and companies covered in the register maintained under
section 301 of the Act, Therefore the question of pricing of shares
does not arise.
19. The Company has not issued any secured debentures, and therefore
the question of creation of security does not arise.
20. The Company has not raised any money by public issues during the
year covered by our report and therefore the question of end use
thereof does not arise.
21. According to the information and explanations given to us, no
fraud by the Company has been noticed or reported during the year. As
regards frauds on the Company during the year, 2 cases of frauds
committed by employees and 6 cases of providing of deceptive
documentation and dishonest representation by clients has been
detected, involving an amount of Rs.1.43 Crore and 1.14 Crore,
respectively. The Company has initiated further investigation in these
cases, and has made the necessary provisions for losses due to such
frauds.
For and on behalf of
Contractor Nayak & Kishnadwala
Chartered Accountants
G. S. Nayak
Partner
Place: Mumbai, Membership No.38127
Date : 10th May, 2011 ICAI Firm Registration NO.101961W
Mar 31, 2010
We have audited the attached Balance Sheet of GIC Housing Finance
Limited (the Company), as at 31st March 2010 and also the Profit and
Loss Account and the Cash Flow Statement for the year ended 31st March
2010, annexed thereto.
These financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. Audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Audit also includes assessing
the accounting principles used and significant estimates made by
management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report that:
1. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
2. In our opinion, proper books of account, as required by law, have
been kept by the company in so far as appears from our examination of
those books;
3. In our opinion, proper returns adequate for the purpose of our
audit have been received from service centres not visited by us.
4. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
5. In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the Mandatory Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act,
1956;
6. On the basis of written representations received from the
directors, as on 31st March 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
7. In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
notes forming part of it, give the information required by the
Companies Act, 1956, in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010, and
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date.
c) In the case of Cash Flow Statement, of the cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS REPORT
As required by the Companies (Auditors Report) Order, 2003 and
according to the information and explanations given to us during the
course of the audit and on the basis of such checks as were considered
appropriate, we report that:
1 (a) The company is maintaining proper records showing full
particulars including quantitative details and situation of the fixed
assets;
(b) As per the information and explanations given to us, the management
carries out the physical verification of the fixed assets at reasonable
intervals. No material discrepancies were noticed on such verification.
(c) No significant fixed assets have been disposed off by the company
during the year and the question of effect on the going concern of the
Company does not arise.
2 Since the company is engaged in providing housing finance, this
clause is not applicable.
3 (a) The company has granted housing loan to its Managing Director,
who is covered in the register maintained
under section 301 of the Companies Act, 1956. The maximum amount
involved and the year end balance of this loan is Rs.15 lakhs.
(b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of
such loan are not, prima facie, prejudicial to the interest of the
company.
(c) As per the terms and conditions of the loan, the company has
received payment of principal and interest regularly.
(d) There is no overdue amount in excess of Rs. 1 lakh in respect of
housing loan granted to Managing Director of the company, who is
covered in the register maintained under section 301 of the Companies
Act, 1956.
(e) As per the information furnished, the Company has not accepted
loans from companies, firms or other parties covered in the register,
maintained under section 301 of the Companies Act 1956. Accordingly
clause (f) and (g) are not applicable to the company.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of- fixed assets. During the course of
our audit, no major weakness has been noticed in the internal control
system and there is no continuing failure for the same.
5 (a) Based on the audit procedures applied by us and according to the
information and explanations provided
by the management, we are of the opinion that the transactions that
need to be entered into the register maintained under Section 301 have
been so entered.
(b) In our opinion and according to the information and explanations
given to us, except for housing loan given to Managing Director, there
is no other transaction made in pursuance of contracts or arrangements
entered in the register maintained under section 301 of the Companies
Act 1956 and aggregating to Rs. 5 lakhs or more in respect of each
party during the year. The terms and interest on such loan is in
accordance with the company policy in respect of Employees Housing
Loan.
6 The Company has not accepted deposits from the public and therefore
the question of compliance with the provisions of Section 58A and 58AA
or any other relevant provisions of the Companies Act, 1956 and rules
made thereunder for the deposits accepted from the public does not
arise.
7 In our opinion, the Companys internal audit system is commensurate
with the size and nature of its business.
8 Since the company is in service sector, the question of maintaining
cost records u/s 209(l)(d) of the Companies Act, 1956 does not arise.
9 (a) According to the information and explanations given to us and the
records examined by us, the Company
is regular in depositing with appropriate authorities undisputed
statutory dues including income tax, wealth tax, service tax, sales
tax, custom duty, excise duty, cess and other statutory dues and there
are no undisputed statutory dues outstanding as at 31st March 2010, for
a period of more than six months from the date they became payable.
(b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, service
tax, excise duty and cess which have not been deposited on account of
any dispute.
10 The company has no accumulated losses as on 31st March, 2010 and no
cash losses in the immediately preceding financial year. The Company
has not incurred any cash loss during the financial year.
11 The company has not defaulted in repayment of dues to a financial
institution or bank or debenture holders.
12 Based on our examination of the records and the information and
explanations given to us, the Company has maintained adequate documents
and records for housing loans granted by it on the basis of security
offered by the borrower.
13 The Company is not a chit fund, nidhi, mutual benefit fund or a
society.
14 The Company has maintained proper records and timely entries are
being made in respect of its dealing in units of mutual funds. All
investments in mutual funds and shares have been held by the Company in
its own name.
15 According to the information and explanations given to us, the
Company has not given any guarantees for loans taken by others from
banks or financial institutions.
16 According to the information and explanations given to us, the term
loans were applied for the purpose for which the loans were obtained.
17 According to the information and explanations given to us and on an
overall examination of the balance sheet of the Company, we report that
funds of Rs. 352 Crore raised on short-term basis by the Company have
been utilised for disbursement of housing loans.
18 According to the information and explanation given to us, the
company has not made any preferential allotment of shares, during the
year, to parties and companies covered in the register maintained under
section 301 of the Act therefore the question of pricing of shares does
not arise.
19 The Company has not issued any secured debentures, and therefore the
question of creation of security does not arise.
20 The Company has not raised any money by public issues during the
year covered by our report and therefore the question of end use
thereof does not arise.
21 According to the information and explanation given to us, no fraud
by the Company has been noticed or reported during the year. As regards
frauds on the Company during the year, one case of misappropriation
committed by an employee has been detected, involving an amount of Rs.
49 lakhs, which has already been recovered during the year.
For and on behalf of
Contractor Nayak & Kishnadwala
Chartered Accountants
G. S. Nayak
Place: Mumbai, Partner
Date : 10th May, 2010 Membership No.38127
ICAI Firm Registration No.l01961W