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Can Fin Homes Ltd.

BSE: 511196 Sector: Financials
NSE: CANFINHOME ISIN Code: INE477A01012
BSE LIVE 15:40 | 02 Dec 1630.00 -63.35
(-3.74%)
OPEN

1684.00

HIGH

1688.00

LOW

1625.00

NSE LIVE 15:57 | 02 Dec 1634.75 -59.05
(-3.49%)
OPEN

1670.00

HIGH

1691.95

LOW

1627.90

OPEN 1684.00
PREVIOUS CLOSE 1693.35
VOLUME 7582
52-Week high 1887.00
52-Week low 840.00
P/E 22.32
Mkt Cap.(Rs cr) 4339.06
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1684.00
CLOSE 1693.35
VOLUME 7582
52-Week high 1887.00
52-Week low 840.00
P/E 22.32
Mkt Cap.(Rs cr) 4339.06
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Can Fin Homes Ltd. (CANFINHOME) - Auditors Report

Company auditors report

TO THE MEMBERS OF CANFIN HOMES LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of Can Fin Homes Limited("the Company") which comprise the Balance Sheet as at March 31 2016 and theStatement of Profit and Loss for the year then ended the Cash Flow Statement for the yearthen ended and a summary of the significant accounting policies and other explanatoryinformation [in which are incorporated the returns for the year ended on that date auditedby the branch auditors of the Company’s 95 branches]

Management’s Responsibility for the Financial Statements

1) The Company’s Board of Directors is responsible for the matters in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial position andfinancial performance of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s responsibility

2) Our responsibility is to express an opinion on these financial statements based onour audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgement including the assessment of the risks of material misstatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to theCompany’s preparation of the financial statements that give true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Opinion

3) In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India: (i) in case of the Balance Sheet of the state ofaffairs of the Company as at March 31 2016 (ii) in case of the Statement of Profit andLoss of the profit for the year ended on that date and; (iii) in case of cash flowstatement the Cash Flows of the Company for the year ended on that date

Other Matter

4) We did not audit the financial statements of 95 branches included in the financialstatements of the Company whose financial statements reflect total assets of H5789/-crores as at March 31 2016 and total revenues of H559/- crores for the year ended on thatdate as considered in the financial statements. The financial statements of thesebranches have been audited by the branch auditors whose reports have been furnished to usand our opinion in so far as it relates to the amounts and disclosures included in respectof these branches is based solely on the report of such branch auditors.

Our opinion is not modified in respect of this matter. Report on Other Legal andRegulatory Requirements

5) As required by the Companies (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofSection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order.

6) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

7) 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 bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Reportare in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 from being appointed as a director in terms of Section 164 (2) of theAct.

(f) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in Note 17 to the financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. The amounts which were required to be transferred to the Investor Education andProtection Fund by the Company have been transferred by the Company.

for K.P.Rao & Co.
Chartered Accountants
Firm Reg. No. 003135S
K. Viswanath
Place : Bengaluru Partner
Date : April 28 2016 Membership No. 022812

ANNEXURE A TO

INDEPENDENTA UDITORS’ REPORT

[REFERRED TO IN PARAGRAGH (4) OF OUR REPORT OF EVEN DATE]

(i) (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) According to the information and explanations given to us the fixed assets of thecompany have been physically verified by the management during the year and no materialdiscrepancies were found on such verification.

(c) The title deeds of immovable property are held in the name of the Company.

(ii) The company does not have inventory of goods hence the provisions of Para 4(ii)of the Companies (Auditors Report) 2016 is not applicable to the Company.

(iii) The company has not granted any loans secured or unsecured to Companies firms orother parties covered in the register maintained under section 189 of the Companies Act2013. Therefore the provisions of Para 4(iii) of the Companies (Auditors Report) 2016 arenot applicable to the Company.

(iv) According to the information and explanations given to us the company does nothave any loans investments guarantees and security which are subject to provisions ofsection 185 and 186 of the Companies Act 2013. Therefore the provisions of Para 4(iv) ofthe Companies (Auditors Report) 2016 are not applicable to the Company.

(v) In our opinion and according to the information and explanations given tous the company has complied with the provisions of Sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under tothe extent applicable and the Housing Finance Companies (NHB) directions 2010 withregard to the deposits accepted from public.

(vi) As explained to us the Central Government has not prescribed maintenance of costrecords under sub-section (1) of section 148 of the Companies Act 2013 in the case ofthis company.

(vii) (a) According to the information and explanations given to us and as per ourverification of the records of the company the company has been regular in depositingundisputed statutory dues including Income Tax Cess and other statutory dues with theappropriate authorities during the year.

(b) According to the information and explanations given to us and as per ourverification of the records of the company the following disputed amounts of tax/dutythat have not been deposited with appropriate authorities as at March 31 2016 are givenbelow :

Statute Nature of dues Amount (H) Period to which the amount relates Forum to which amount is pending
Income Tax Act 1961 Income Tax 44813345 AY 2007-08 The Company has filed an appeal before the Hon’ble High Court of Karnataka which has been admitted and yet to be heard
Income Tax Act 1961 Dividend Distribution Tax u/s.115-O 1643798 AY 2011-12 The Company has determined the probable liability of H197812/- and made a request for adjustment of the said amount against the refund due. Revised orders awaited from the Department.
Total 46457143

(viii) According to the information and explanations given to us the company has notdefaulted in repayment of dues to banks financial institutions and debenture holders.

(ix) According to the information and explanations given to us no fraud by the companyand no fraud on the Company by its officers or employees has been noticed or reportedduring the year.

(x) According to the information and explanations given to us the managerialremuneration has been paid or provided in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act 2013.

(xi) The company is not a Nidhi Company and therefore the provisions of Para 4(xi) ofthe Companies (Auditors Report) 2016 is not applicable to the Company.

(xii) The transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

(xiii) The company has not made any preferential allotment or private placementof shares or fully or partly convertible debentures during the year under review andtherefore the provisions of Para 4(xiii) of the Companies (Auditors Report) 2016 is notapplicable to the Company.

(xiv) The company has not entered into any non-cash transactions with directors orpersons connected with him therefore the provisions of Para 4(xiv) of the Companies(Auditors Report) 2016 is not applicable to the Company.

(xv) The company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

for K.P.Rao & Co.
Chartered Accountants
Firm Reg. No. 003135S
K. Viswanath
Place : Bengaluru Partner
Date :April 28 2016 Membership No. 022812

Annexure B to

INDEPENDENTA UDITORS’ REPORT

[REFERRED TO IN PARAGRAGH (5) OF OUR REPORT OF EVEN DATE]

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

1. We have audited the internal financial controls over financial reporting of theCompany as at March 31 2016 in conjunction with our audit of the Balance Sheet as atMarch 31 2016 the statement of profit and loss and cash flow statement annexed for theyear ended on that date.

Management’s Responsibility for Internal Financial Controls

2. The management is responsible for establishing and maintaining internal financialcontrols based on the essential components of internal control stated in the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (‘the GuidanceNote’) issued by the Institute of Chartered Accountants of India (‘theICAI’). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to Company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required the Companies Act 2013(‘the Act’).

Auditor’s Responsibility

3. Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note and the Standards on Auditing (‘the Standards’) issuedby the ICAI and deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by the ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

6. A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. This includes those policies and procedures that:

i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and directors of the company and;

iii) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company’s assets that could havea material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

7. Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

8. In our opinion the Company has maintained in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2016based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

for K.P.Rao & Co.
Chartered Accountants
Firm Reg. No. 003135S
K. Viswanath
Place : Bengaluru Partner
Date :April 28 2016 Membership No. 022812

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