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GIC Housing Finance Ltd.

BSE: 511676 Sector: Financials
NSE: GICHSGFIN ISIN Code: INE289B01019
BSE LIVE 15:40 | 23 Nov 422.90 -2.10
(-0.49%)
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425.00

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430.00

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NSE 15:49 | 23 Nov 422.60 -2.35
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OPEN 425.00
PREVIOUS CLOSE 425.00
VOLUME 9678
52-Week high 623.20
52-Week low 250.90
P/E 13.93
Mkt Cap.(Rs cr) 2,277
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 425.00
CLOSE 425.00
VOLUME 9678
52-Week high 623.20
52-Week low 250.90
P/E 13.93
Mkt Cap.(Rs cr) 2,277
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

GIC Housing Finance Ltd. (GICHSGFIN) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS' REPORT

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 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary 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 ofthese financial statements to give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating 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

Our responsibility is to express an opinion on these financial statements based on ouraudit.

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 and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 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 theaccounting treatment of the expenditure on creation of Deferred Tax Liability on SpecialReserves under Section 36(1)(viii) of the Income Tax Act 1961 as at March 31 2017pursuant to NHB's Circular No. NHB (ND)/DRS/Policy Circular No. 65/2014-15 dated August22 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 (hereinafterreferred to as the "Order") and on the basis of such checks of the books andrecords of the Company as we considered appropriate and according to the information andexplanations given to us we give in the Annexure 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 purpose 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.

c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Companies Act 2013 read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) ofthe Act.

f) With respect to adequacy of the internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to our separateReport in "Annexure A".

g) 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 its financial statements - Refer Note 24(2) to the financial statements.

ii. The company did not have any long term contracts including derivative contracts forwhich 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 theInvestor Education and Protection Fund by the Company during the year ended March 312017.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes (SBN's) during the period fromNovember 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 ofaccounts maintained by the Company and as produced to us by the Management - Refer Note24(13) to the financial statements.

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

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year ended 31 March 2017 we report that:

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

(b) The fixed assets of the Company have been physically verified by the Managementduring the year. The discrepancies noticed on such verification are not material and havebeen properly dealt with in the books of accounts. In our opinion the frequency ofverification is reasonable.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii) The Company is in the business of rendering services and consequently does nothold any inventory. Therefore the provisions of clause 3(ii) of the said Order are notapplicable to the Company.

iii) According to the information and explanations given to us during the year theCompany has not granted any loans secured or unsecured to Companies Firms LimitedLiability Partnerships or other parties covered in the register maintained under Section189 of the Companies Act 2013. Therefore the provision of Clause 3(iii)(a) of the saidorder is not applicable to the Company. One party to whom loan was given in the earlierfinancial 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 theregister maintained under Section 189 of the Act the borrower is regular in the paymentof the principal and interest as stipulated.

(c) There is no overdue amount for more than ninety days in respect of the loan grantedin the earlier financial year to a party listed in the register maintained under Section189 of the Act.

iv) The Company has not advanced any loan or given any guarantee or provided anysecurity 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 acceptedany deposits to which directives of National Housing Bank and provisions of sections 73 to76 or other relevant provisions of the Companies Act 2013 and rules framed thereunderapply. Accordingly the provisions of clause 3(v) of the said Order are not applicable tothe Company.

vi) The Central Government has not prescribed the maintenance of cost records underSection 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 undisputedstatutory dues including provident fund Employee's State Insurance income-tax salestax value added tax cess duty of customs service tax cess and other materialstatutory dues applicable to it. According to the information and explanations given tous no undisputed amounts payable in respect of outstanding statutory dues were in arrearsas at March 31 2017 for a period of more than six months from the date they becamepayable.

(b) According to the information and explanations given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise and value added taxwhich 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 andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to a financial institution bank Government or debenture holders during theyear.

ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. According to the informationand explanations provided to us the Company has applied term loans for the purpose forwhich the loans were obtained.

x) According to the information and explanations given to us except for a fraud by anemployee of the Company which is under investigation; no fraud by the Company or on theCompany by its other officers or employees has been noticed or reported during the courseof our audit.

xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Act.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable.

xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi) The Company is a Non-Banking Financial Institution; however it has been exemptedfrom the requirement of registration under Section 45 IA of the Reserve Bank of India Act1934. Since the Company is registered under National Housing Bank (NHB) Act 1987 andregulated 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

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF GIC HOUSING

FINANCE LIMITED

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 controls over financial reporting of GIC HousingFinance Limited ("the Company") as of March 31 2017 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on "the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI)". Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditor's 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 Companies

Act 2013 to the extent applicable to an audit of internal financial controls bothapplicable to an audit of Internal Financial Controls and both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about 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 judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

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 controls systemover 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 financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over 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

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.

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