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Dewan Housing Finance Corporation Ltd.

BSE: 511072 Sector: Financials
NSE: DHFL ISIN Code: INE202B01012
BSE LIVE 15:40 | 18 Aug 449.50 1.35
(0.30%)
OPEN

442.00

HIGH

452.05

LOW

438.00

NSE 15:57 | 18 Aug 450.35 1.90
(0.42%)
OPEN

440.00

HIGH

453.00

LOW

438.05

OPEN 442.00
PREVIOUS CLOSE 448.15
VOLUME 196265
52-Week high 479.00
52-Week low 214.20
P/E 12.89
Mkt Cap.(Rs cr) 14,094
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 442.00
CLOSE 448.15
VOLUME 196265
52-Week high 479.00
52-Week low 214.20
P/E 12.89
Mkt Cap.(Rs cr) 14,094
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dewan Housing Finance Corporation Ltd. (DHFL) - Auditors Report

Company auditors report

To the Members of

Dewan Housing Finance Corporation Limited

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of Dewan HousingFinance Corporation Limited (“the Company”) which comprise the Balance Sheet asat March 31 2017 and the Statement of Profit and Loss and Cash Flow Statement for theyear then ended and a summary of significant accounting policies information in whichare incorporated the Returns for the year ended on that date audited by the branchauditors of the Company's branches/offices at 241 locations.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (“the Act”) with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection sufficient andappropriate toand application of the appropriate accounting policies; making judgementsand estimates that are reasonable and prudent; and design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation and fairpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these standalone . financialstatementsbased on our 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 thereunder.

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 standalone financial statements are free from material misstatement.and otherexplanatory

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgement including the assessment of the risks of material misstatement of thestandalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone financial statements that give a true and fair view inorderofto 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 the Company's Directors as well as evaluating theoverall presentation of the standalone financial statements.

We believe that the audit evidence we have obtained is a basis for our audit opinion onthe standalone financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial by the Act in the manner so required andgive a true and fair view in conformity with the accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2017 and its profit andits 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 2016 (“the Order”)issued by the Central Government of India in terms of sub-section (11) of Section 143 ofthe Act we give in the “Annexure A” a statement on the matters specified inparagraphs 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 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 appears from our examination of those books and proper returns adequatefor the purpose of our audit have been received from branches not visited by us;

c) The reports on the accounts of the branch offices the Company audited under Section143 (8) of the Act by branch auditors have been sent to us and have been property dealtwith by us in preparing this report;

d) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this report are in agreement with the books of account and with the returns receivedfrom branches not visited by us;

e) 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;

f) On the basis of written representations received from the directors as on March 312017 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct;

g) 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”. Our report expresses an unmodifiedopinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting;

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rules 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements as referred to in Note 30 to thestandalone financial statements;

ii) The Company has no material foreseeable losses on long-term contracts includingderivative contracts as required under the applicable law or accounting standards.

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company except that the amount of`705/- payable for the mon th of March 2017 has been transferred to IEPF in the month ofApril 2017.

iv) The Company has provided requisite disclosures in the standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom November 8 2016 to December 30 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company and as produced to us by the Management as referred toin Note 40 to the standalone financial statements.

For Chaturvedi & Shah
Chartered Accountants
(ICAI Firm Registration No. 101720W)
Jignesh Mehta
Mumbai Partner
Date: May 3 2017 ICAI Membership No.: 102749

Annexure A to the Independent Auditors' Report

(Referred to in Paragraph 1 under the heading of “Report on other legal andregulatory requirements” of our report of even date)

1) In respect of its fixed assets:

a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us some of the fixed assets were physically verified during theyear by the Management as per programme of verification.

According to the information and explanation given to us no material discrepancieswere noticed on such verification.

c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deeds provided to us we reportthat the title deeds comprising all the immovable properties in respect of buildingsare held in the name of the Company as at the balance sheet date. In respect of immovableproperties i.e. buildings taken on lease and disclosed as fixed asset in the standalonefinancial statements the lease agreements for the said buildings thereof are in the nameof the Company.

2) As the Company had no Inventories during the year clause (ii) of paragraph of 3 ofthe Order is not applicable to the Company.

3) The Company has granted interest free unsecured loans to wholly owned subsidiariesamounting to Rs.153 Lakh and the closing balance as at March 31 2017 was `238 Lakh. Inour opinion and according to information and explanations given to us in respect of theseloans:

a) The terms and conditions of the grant of such loans are not prejudicial to theCompany's interest.

b) There is no schedule of repayment of principal and are repayable on demand. Alsothere is no stipulation as to date of payment of interest.

c) Since the principal and interest on these loans are repayable on demand question ofoverdue amount does not arise. 4) Company has not directly or indirectly advanced loan tothe person or given guarantees or securities in connection with the loan taken by personscovered under Section 185 of the Act. Company being a housing finance company nothingcontained in Section 186 except subsection (1) of that section.

5) The Company has accepted deposits from the public.

In our opinion and according to the information and explanation given to us theCompany has during the year complied with the directives issued by the National HousingBank under the Housing Finance Companies (NHB) Directions 2010 as amended with regardto deposits accepted from the public and the Rules framed there under and provision ofSections 73 to 76 and other relevant provisions of the Act. According to the informationand explanation given to us no order has been passed by the National Company Law Tribunalor the National Housing Bank or the Reserve Bank of India or any Court or any otherTribunal.

6) To the best of our knowledge and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under sub section (1) of Section 148 ofthe Act in respect of the activities undertaken by the Company.

7) In respect of Statutory dues:

a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has been generally regular indepositing its undisputed statutory dues such as Provident Fund Employees StateInsurance Income Tax Service Tax and any other material statutory dues whichever isapplicable to the Company with the appropriate authorities during the year. According tothe information and explanation given to us no undisputed amounts payable in respect ofaforesaid dues were outstanding as at March 31 2017 for a period of more than six monthsfrom the date they became payable.

b) According to the information and explanations given to us no statutory dues areoutstanding on account of dispute.

8) According to the information and explanations given to us and based on the recordsof the Company examined by us the Company has not defaulted in repayment of loans to anyfinancial institutions bank and dues to debenture holders. Company has not taken any loanfrom government.

9) The Company has generally applied the amount raised by way of term loans and publicissue of debt instruments for the purpose for which they were obtained other thantemporary deployment pending application of those funds.

10) According to the information and explanations given to us no fraud by the Companyand no material fraud on the Company by its officers or employees has been noticed orreported during the year

11) In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapproval mandated by the provision of Section 197 read with Schedule V to the Act.

12) In our opinion company is not a nidhi company. Therefore the provisions of clause(xii) of paragraph 3 of the Order are not applicable to the Company.

13) In our opinion and according to the information and explanations given to usCompany is in compliance with Sections 177 and 188 of the Act wherever applicable forall the transactions with related parties and their details have been disclosed in thestandalone financial statements etc. as required by the applicable accounting standards.

14) The Company has issued equity shares against the warrants allotted on preferentialbasis in previous year. Company has complied with the requirement of Section 42 of the Actand amount raised has been used for purpose for which it was raised.

15) In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transaction with the directors or personsconnected with him and covered under Section 192 of the Act. Hence clause (xv) of theparagraph 3 of the Order is not applicable to the Company.

16) To the best of our knowledge and as explained the Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934.

For Chaturvedi & Shah
Chartered Accountants
(ICAI Firm Registration No. 101720W)
Jignesh Mehta
Mumbai Partner
Date: May 3 2017 ICAI Membership No.: 102749

Annexure B to the Independent Auditors' Report

“Annexure B” to Independent Auditors' Report referred to in paragraph 2(f)under the heading “Reportonotherlegalandregulatoryrequirements” of our report ofeven date.

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

We have audited the Internal Financial Control over financial reporting of DewanHousing Finance Corporation Limited (“the Company”) as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear then ended.

MANAGEMENT RESPONSIBILITY FOR THE INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financialreportingcriteriaestablished sufficient and appropriate to by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India (ICAI). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

AUDITORS' RESPONSIBILITY

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 on Audit of Internal Financial Controls over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls both applicable to an audit of Internal Financial Controlsand both issued by the ICAI. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe 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 standalone financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is a basis for our audit opinion onthe Company's internal financial controls system over financial reporting.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone financial statements for external purposes in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standalonefinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorisations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the Company's assets that could have a material effect on the standalonefinancial statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

Because of the inherent limitations of internal financial controls over financialreporting including the possibility 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

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial of reporting were operating effectively based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

For Chaturvedi & Shah
Chartered Accountants
(ICAI Firm Registration No. 101720W)
Jignesh Mehta
Mumbai Partner
Date: May 3 2017 ICAI Membership No.: 102749