To the Members of
Housing Development and Infrastructure Limited
Report on the Standalone Financial Statements
We have audited the accompanying Financial Statements of Housing Development andInfrastructure Limited ("the Company") which comprise the Balance Sheet as at31st March 2016 Statement of Profit and Loss and Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.
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 of 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 provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there-under
We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone financial statements are free frommaterial misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor'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's preparation ofthe standalone 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 standalone financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2016 and its profit and its cash flows for the yearended on that date.
Report on Other Legal and Regulatory Requirements;
1. As required by the Companies (Auditors' Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act and on the basis of such checks of the books and records of the Company as weconsidered appropriate and according to the information and explanation given to us wegive in the "Annexure A" a statement on the matters specified in the paragraph 3and 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 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 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in termsof Section 164 (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 controls 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:
i. The Company has disclosed the impact of pending litigations on its standalonefinancial position in its standalone financial statements as referred to in Note 31 to thestandalone financial statements;
ii. 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;
iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31stMarch 2016.
For Thar & Co.
Chartered Accountants Firm Registration No: 110958W
Jayesh R. Thar
Membership No. 032917
Place : Mumbai Date : 28th May 2016
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 2016 of
Housing Development and infrastructure Limited;
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the 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 immovable properties are held in the 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) (a) Other than opening outstanding balances of loan to subsidiaries the Companyhas not granted any further loans to companies firms or other parties covered in theregister maintained under section 189 of the Act.
(b) No repayment schedule has been specified and repayment has been made on demandtherefore the question of regularity in repayment of principal amount whereverapplicable does not arise.
(c) There are no overdue amounts of more than rupees one lakh in respect of the loansgranted to the bodies corporate listed in the register maintained under section 189 of theAct.
(iv) The Company has not granted any Loans or Guarantees to directors or made anyinvestments as mentioned in the Sec 185 and Sec 186 of the Act and hence the provisions ofclause (iv) are not applicable to the Company.
(v) The company has not accepted any deposits from the public within the meaning of Sec73 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 VAT cessand other material applicable statutory dues have generally been regularly deposited withthe appropriate authorities and as on 31st March 2016 no such dues wereoutstanding for a period of more than six months from the date they became payable exceptfor the following:-.
|Nature of Dues ||Rs in Lakhs |
|Tax Deducted at Source (inclusive of ||828.25 |
|Interest || |
|Service Tax (Interest only) ||3.73 |
|Value Added Tax (Interest only) ||47.94 |
(b) According to the information and explanations given to us there are no materialdues of service tax value added tax wealth tax duty of customs and cess which have notbeen deposited 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:
|Financial Year ||income Tax Demand (Rs in Lakhs) |
|2010-11 ||25772.37 |
|2011-12 ||1419.40 |
|2012-13 ||29145.86 |
The company has filed appeal before the Commissioner of Income Tax appeals (53) for allthe above mentioned Income Tax demands. The Company has also filed stay application undersection 220 (6) of the Income Tax Act 1961 before the Assessing Officer and disposal ofthe same is pending.
(viii) As per the information and explanations furnished to us and our verification ofrecords of the Company the Company has delayed in repayment of dues to Debenture HoldersFinancial Institutions and Banks. An amount of Rs 9210 Lacs towards principal and Rs 9864Lacs towards interest to Non-Cumulative Debenture Holders and Rs 19281 Lacs towardsprincipal on Term Loans from Bank and Financial Institutions and Rs 16549 Lacs towardsinterest thereon.
(ix) The Company has not raised money through initial public offers or further publicoffers during the financial year. However the term loans raised during the year have beenapplied by the Company for the purpose for which they were raised.
(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) 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 and 188of the Companies Act 2013 and where applicable the details of related party transactionshave been disclosed in the financial statement as required by the applicable accountingstandards.
(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of Paragraph 3 of the Order is not applicable to the Company.
(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 be registered under Sec 45 IA of the Reserve Bankof India Act 1934.
For Thar & Co.
Chartered Accountants Firm Registration No: 110958W
Jayesh R. Thar
Membership No.: 032917
Place : Mumbai Date : 28th May 2016
annexure-b to the independent auditors' report of even date on the standalone financialstatements of housing development and infrastructure limited.
REPORT ON THE INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (I) OFSUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT 2013 ("THE ACT")
We have audited the internal financial controls over financial reporting of HOUSINGDEVELOPMENT AND INFRASTRUCTURE LIMITED ("the Company") as of 31stMarch 2016 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India('ICAI'). 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's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
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 issued by ICAI and prescribed undersection 143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls. 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 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.
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 31st March 2016based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note.
FOR THAR & CO.
Chartered Accountants Firm's Registration No. 110958W
Membership No. 032917
Mumbai 28th May 2016
All the assets and liabilities have been