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Housing Development & Infrastructure Ltd.

BSE: 532873 Sector: Infrastructure
NSE: HDIL ISIN Code: INE191I01012
BSE 15:56 | 19 Jan 61.00 -0.60
(-0.97%)
OPEN

61.70

HIGH

61.80

LOW

59.75

NSE 15:59 | 19 Jan 60.90 -0.70
(-1.14%)
OPEN

61.50

HIGH

61.85

LOW

59.60

OPEN 61.70
PREVIOUS CLOSE 61.60
VOLUME 3084499
52-Week high 101.85
52-Week low 45.10
P/E 15.93
Mkt Cap.(Rs cr) 2,647
Buy Price 61.00
Buy Qty 20.00
Sell Price 0.00
Sell Qty 0.00
OPEN 61.70
CLOSE 61.60
VOLUME 3084499
52-Week high 101.85
52-Week low 45.10
P/E 15.93
Mkt Cap.(Rs cr) 2,647
Buy Price 61.00
Buy Qty 20.00
Sell Price 0.00
Sell Qty 0.00

Housing Development & Infrastructure Ltd. (HDIL) - Auditors Report

Company auditors report

To the Members of

Housing Development and Infrastructure Limited Report on the Financial Statements

We have audited the accompanying Financial Statements of Housing Development andInfrastructure Limited ("the Company") which comprise the Balance Sheet as at31st March 2017 Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of 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 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.

Auditors’ 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 there-under.

We conducted our audit of the financial statement in accordance with the Standards onAuditing specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement. Anaudit involves performing procedures to obtain audit evidence about the amounts and thedisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion onthe 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 31stMarch 2017 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 (Auditor’s Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the "Annexure A" a statement on the matters specified inthe paragraph 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 it appears from our examination of those books.

(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.

(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 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

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

(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:

(a) The Company has disclosed the impact of pending litigations on its standalonefinancial position in its standalone financial statements as referred to in Note 35 to thestandalone financial statements;

(b) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

(c) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

(d) The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in the Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on the 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 as referred toNote 39 to the standalone financial statement.

For Thar & Co.

Chartered Accountants

Firm Registration No: 110958W

CA Jayesh R. Thar

Partner

Membership No.: 032917

Place : Mumbai

Date : 30th May 2017

"ANNEXURE A" TO INDEPENDENT AUDITORS’ REPORT

Referred to in Paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our Report of even date on the financial statements forthe year ended on 31st March 2017 of Housing Development and Infrastructure Limited

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

(b) All the fixed assets have been physically verified by the management in a phasedmanner over a period of one year which in our opinion is reasonable having regard tothe size of the Company and the nature of its assets. No material discrepancies werenoticed on such verification. (c) The title deeds of the immovable property are held inthe name of the company.

(ii) The inventories have been physically verified by the management at reasonableintervals during the year. In our opinion the frequency of verification is reasonable. Onthe basis of our examination of inventory records no material discrepancy was discoveredduring the period.

(iii) The Company has not granted any loans to companies firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct and therefore the provisions of clause (iii) of paragraph 3 of the Order are notapplicable to the Company. (iv) The Company has not granted any Loans or Guarantees todirectors or made any investments as mentioned in the Section 185 and Section 186 of theAct and hence the provisions of clause

(iv) are not applicable to the Company.

(v) The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act and the rules framed there under to the extent notified.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Companies (Cost Records and Audit) Rules 2016 prescribed by the Central Governmentunder Section 148 (1) of the Act and are of the opinion that prima facie the prescribedcost records have been made and maintained. We have not however made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

(vii) (a) According to the information and explanations given to us the Company isgenerally regular in depositing undisputed amount of statutory dues in respect ofProvident Fund Employee’s State Insurance Income Tax Sales Tax Service Tax VATcess and other material statutory dues as applicable with the appropriate authorities andas on 31st March 2017 no such dues were outstanding for a period of more than six monthsfrom the date they became payable except for the following:-.

Nature of Dues Rs. in Lakhs
Tax Deducted at Source (inclusive of 635.46
Interest
Service Tax (Interest only) 6.01
Value Added Tax (Interest only) 11.76
Provident fund 236.53
Profession tax 5.02

(b) According to the information and explanations given to us there are dues ofservice tax value added tax wealth tax duty of customs and cess which have not beendeposited with the appropriate authorities on account of any dispute. However thefollowing dues of income tax have not been deposited by Company on account of disputes:

Name of The Statute Nature of Dues Forum where the Dispute is Pending Period to which the Amount Relates Amount Involved Amount unpaid
(Rs. in Lakhs) ( Rs. in Lakhs)
Income Tax Act 1961 Income CIT FY 2008-09 2036.24 2036.24
Tax Appeals Mumbai FY 2010-11 25772.4 25716.7
FY 2012-13 29145.9 29145.9
FY 2013-14 7403.56 7403.56
Income Tax Act 1961 TDS CIT Appeals Mumbai FY 2014-15 128.90 128.90
FY 2015-16 90.31 90.31

(viii) Based on our Audit procedures and as per the information and explanations givenby the management the company has defaulted in repayment of loans and interest to banksfinancial institutions and debenture holders. Estimated unpaid overdue interest andinstallments to banks financial institutions and debenture-holders as at 31st March 2017is aggregated to `888.04 crores. The overdue relates to the financial years 2013-142014-15 2015-16 and 2016-17.

(ix) The Company has not raised money through initial public offers or further publicoffers or debt instruments or term loans during the financial year.

(x) Based on the audit procedure performed and the representation obtained from themanagement no case of fraud on or by the Company or any of its employees or officers werenoticed or reported during the course of our audit.

(xi) Managerial remuneration has been provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) The Company is not a Nidhi Company as specified by the Companies Act 2013 andhence the provisions under clause (xii) of Paragraph 3 of the Order are not applicable.

(xiii) In our opinion and according to the information and explanations given to us theCompany’s transactions with its related party are in compliance with Sections 177 and188 of the Companies Act 2013 and where applicable the details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) During the year the Company has made preferential allotment of 1.5 crores sharesof face value of ` 10 at a premium of ` 90 per share and accordingly all compliances ofsection 42 of the Companies Act 2013 have been complied with. The amount raised throughpreferential allotment has been used for the purpose for which they have been raised.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or persons connected with him and hence reporting under clause (xv) of Paragraph3 of the Order is not applicable to the Company. (xvi) The Company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934.

For Thar & Co.

Chartered Accountants

Firm Registration No: 110958W

CA Jayesh R. Thar

Partner

Membership No.: 032917

Place : Mumbai

Date : 30th May 2017

"ANNEXURE B" TO INDEPENDENT AUDITORS’ REPORT

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of M/SHousing Development and Infrastructure Limited ("the Company") as of March31 2017 in conjunction with our audit of the standalone financial statements of theCompany 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 safeguardingof its 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 Companies Act 2013.

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 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 168 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

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. 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 financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 Thar & Co.

Chartered Accountants

Firm Registration No: 110958W

CA Jayesh R. Thar

Partner

Membership No.: 032917

Place : Mumbai

Date : 30th May 2017