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GRUH Finance Ltd.

BSE: 511288 Sector: Financials
NSE: GRUH ISIN Code: INE580B01029
BSE LIVE 15:40 | 15 Dec 508.80 3.50
(0.69%)
OPEN

501.00

HIGH

511.70

LOW

501.00

NSE 15:56 | 15 Dec 508.50 2.65
(0.52%)
OPEN

504.00

HIGH

510.00

LOW

504.00

OPEN 501.00
PREVIOUS CLOSE 505.30
VOLUME 10392
52-Week high 551.00
52-Week low 298.00
P/E 57.30
Mkt Cap.(Rs cr) 18,604
Buy Price 508.80
Buy Qty 203.00
Sell Price 0.00
Sell Qty 0.00
OPEN 501.00
CLOSE 505.30
VOLUME 10392
52-Week high 551.00
52-Week low 298.00
P/E 57.30
Mkt Cap.(Rs cr) 18,604
Buy Price 508.80
Buy Qty 203.00
Sell Price 0.00
Sell Qty 0.00

GRUH Finance Ltd. (GRUH) - Auditors Report

Company auditors report

TO THE MEMBERS OF GRUH FINANCE LIMITED

Report on the Financial Statements

We have audited the accompanying financial statements of GRUH 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 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 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 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. 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 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. Report onOther 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 subsection (11) of section 143 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 of the Order to the extent applicable.

2. As required by section 143(3) of the Act we report that :

(a) We have sought and obtained all the information and explanations which to the 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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus. (c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account and with the returnsreceived from the branches not visited by us.

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

(e) On the basis of the written representations received from the directors as on March31 2017 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) of theAct.

(f) 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 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 28 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. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; iv. The Company has providedrequisite disclosures in the financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from November 8 2016 to December 30 2016. Basedon audit procedures and relying on the management representation we report that thedeclosures are in accordance with the books of account maintained by the Company and asproduced to us by the management - Refer Note 32.

For SORAB S. ENGINEER & Co.
Firm's Registration No. 110417W
Chartered Accountants
CA N. D. Anklesaria
Mumbai Partner
April 17 2017 Membership No. 10250

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT

Re : GRUH Finance Limited

Referred to in Paragraph 1 under the heading "Report on other legal and regulatoryrequirements" of our report of even date

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

(b) Some of the fixed assets were physically verified during the year by the Managementin accordance with a program of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to the informationand explanations given to us no material discrepancies were noticed on such verification.

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

(ii) According to the information and explanations given to us the nature of theCompany's business is such that it is not required to hold any inventories.

(iii) The Company has not granted any loans secured or unsecured to Companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Act. Consequently requirement of clauses (iiia) (iiib) and (iiic)of paragraph 3 of the order are not applicable.

(iv) The Company has not advanced any loan or given any guarantee or provided anysecurity 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) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 73 to 76 of the Act and the HousingFinance Companies (NHB) Directions 2010 with regard to the deposits accepted from thepublic. No order has been passed by the Company Law Board or National Company Law Tribunalor Reserve Bank of India or any Court or any other Tribunal.

(vi) The Company is not engaged in production processing manufacturing or miningactivities Therefore the provisions of maintenance of cost records specified by theCentral Government under sub section (1) of section 148 of the Companies Act 2013mentioned in clause (vi) of paragraph 3 of the order are not applicable.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Investor Education and Protection Fund IncomeTax Wealth Tax Service Tax Cess and other material statutory dues applicable to it.

According to the information and explanations given to us no undisputed amountspayable in respect of outstanding statutory dues were in arrears as at March 31 2017 fora period of more than six months from the date they became payable.

(b) According to the information and explanations given to us following amounts havenot been deposited as on March 31 2017 on account of any dispute :

Nature of Statute Nature of the dues Rs. in crore Period to which the matter pertains Forum where matter is pending
Income Tax Act Income Tax 0.58 2007-2008 ITAT Ahmedabad
Income Tax Act Income Tax 0.91 2009-2010 Commissioner of
Income Tax (Appeals)
Income Tax Act Income Tax 1.05 2010-2011 ITAT Ahmedabad
Income Tax Act Income Tax 0.38 2013-2014 Commissioner of
Income Tax (Appeals)

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowings to financial institutions banks governmentor dues to debenture holders.

(ix) The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments). To the best of our knowledge and belief and accordingto the information and explanations given to us in our opinion the term loans obtainedduring the year were prima facie applied by the Company for the purpose for whichthey were obtained other than temporary deployment pending application.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

(xi) To the best of our knowledge and belief and according to the information andexplanations given to us managerial remuneration has been paid/provided in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV to the Act. (xii) The Company is not a Nidhi Company. Consequently requirements ofclause (xii) of paragraph 3 of the order are not applicable. (xiii) To the best of ourknowledge and belief and according to the information and explanations given to us alltransactions with the related parties are in compliance with section 177 and 188 of theAct where applicable and the details have been disclosed in the Financial Statements etc.as required by the applicable accounting standards.

(xiv) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Consequently requirements of clause (xiv) of paragraph 3 of the order are notapplicable.

(xv) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

(xvi) To the best of our knowledge and belief and according to the information andexplanations given to us the Company is not required to be registered under section 45IAof the Reserve Bank of India Act 1934.

For SORAB S. ENGINEER & Co.
Firm's Registration No. 110417W
Chartered Accountants
CA N. D. Anklesaria
Mumbai Partner
April 17 2017 Membership No. 10250

ANNEXURE - A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIALSTATEMENTS OF GRUH 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 GRUHFinance 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 extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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 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 authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany's assets that could have a material effect on the financial statements. InherentLimitations of Internal Financial Controls over Financial Reporting Because of theinherent limitations of internal financial controls over financial reporting includingthe possibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting to futureperiods are subject to the risk that the internal financial control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance 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"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For SORAB S. ENGINEER & Co.
Firm's Registration No. 110417W
Chartered Accountants
CA N. D. Anklesaria
Mumbai Partner
April 17 2017 Membership No. 10250