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Ind Bank Housing Ltd.

BSE: 523465 Sector: Financials
NSE: N.A. ISIN Code: INE969D01012
BSE LIVE 15:40 | 13 Nov 25.35 0.70
(2.84%)
OPEN

25.10

HIGH

25.85

LOW

23.45

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 25.10
PREVIOUS CLOSE 24.65
VOLUME 2199
52-Week high 39.55
52-Week low 17.85
P/E
Mkt Cap.(Rs cr) 25
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 25.10
CLOSE 24.65
VOLUME 2199
52-Week high 39.55
52-Week low 17.85
P/E
Mkt Cap.(Rs cr) 25
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ind Bank Housing Ltd. (INDBANKHOUSING) - Auditors Report

Company auditors report

INDEPENDENT AUDITOR'S REPORT

To The Members of Ind Bank Housing Limtied

We have audited the accompanying financial statements of Ind Bank Housing Limited("the Company") which comprise the Balance Sheet as at March 31 2017 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other exaplanatory 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting 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 the assets of the Companyand for preventing and detecting frauds and other irregularities; selection and applicableof appropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

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 accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement. An audit involves performing procedures to obtain audit evidence about theamounts and the disclosures in the financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material mistatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company's preprataion ofthe financial statements that give a true and fair view in order to design auditprocedures that are appropriate in the circumstances. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpreparation of the financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestand alone financial statements.

Opinion

In our opinion and to be the best of our information and accoring 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 theaccounting principles generally accepted in India

a. In the case of Balance Sheet of the state of affiars of the Company as at 31 March2017

b. In the case of Profit and Loss account of the loss for the year ended on that dateand

c. In the case of cash flow statement of the cash flow 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 in the paragraph3 and 4 of the Order.

2. As required by Section 143(5) we have included in the Annexure-B a statement onthe matters specified in the ‘Directions' and in our opinion no action is requiredto be taken thereon and there is no impact on the accounts and financial statements of theCompany.

3. 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 31March 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31 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 controls refer to ourseparate report in "Annexure C"; and

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 accoring to the explanations given to us:

i. the company has disclosed the impact of pending litigations on its financialposition in its financial statements vide Note No. 19(k) to the financial statements;

ii. the Company has made provisionns as required under the applciable law oraccounting standards for material foreseeable losses if any on long-term contractsincluding derivative contracts Refer Note 19(a) to the financial statements; iii. Thereare no amounts that are required to be transferred to the Investor Education andProtection Fund by the Company subject to Note No.19 (j) to the financial statements. iv.the Company has provided requisite disclosures in its financial statements vide Note No.20(l) as to holdings as well as dealings in Specified Bank Notes during the period from 8November 2016 to 30 December 2016 and these are in accordance with the books of accountsmaintained by the Company. Refer Note 20(l) to the financial statements.

For Anand & Ponnappan
Chartered Accountants
FRN 000111S
CA R. Ananda Kumar
Chennai Partner
24.05.2017 M.No. 021919

Annexure A to the Auditor's Report

The Annexure referred to in Independent Auditor's Report to the members of the Companyon the financial statements for the year ended 31 March 2017. We report that:

i. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. These fixed assets have beenphysically verified by the management at reasonable intervals and no materialdiscrepancies were noticed on such verification. There is no immovable property held inthe name of the Company.

ii. The Company is a service company primarily rendering financial services. Thusparagraph 3(ii) of the Order on ‘inventory' is not applicable to the Company

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 Companies Act 2013.

iv. There is no loans investments guarantees and security attracting provisions ofSection 185 and 186 of the Company's Act 2013.

v. The Company has now stopped attracting deposits from the Public. It has repaid allthe deposits accepted in the earlier years in compliance with the provisions of theCompany's Act 1956 and the rules framed and directions issued by the National HousingBank (NHB) except Rs. 6.33 lacs. This amount represent the deposit matured but withheld asCentral Bureau of Investigation and Anti-Corruption Branch Shastri Bhavan Chennai hasgiven direction not to release till the deposit of the pending cases.

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)According to the information and explanations given to us and on the basis ofour examination of the records of the Company there were no dues towards undisputedstatutory dues including provident fund employees state insurance income-tax sales taxservice tax duty of customs duty of excise value added tax cess and other statutorydues to the appropriate authorities and if not the extent of the arrears of outstandingstatutory dues as on the last day of financial year concerned for a period of more than 6months from the date they become payable except Rs. 19.02 lacs as reflected in the booksof accounts towards Income Tax for the AY 2005-06. (b) According to the information andexplanations given to us there are no material dues of duty and customs which have notbeen deposited with the appropriate autorities on account of any dispute. Howeveraccording to information and explanations given to us the following dues of income taxhave not been deposited by the Company on account of dispute.

Income tax of Rs. 432 lakhs for the assessment year 1999-2000 which is pendingbefore Madras High Court.

viii. The outstanding loans of Rs. 129.85 crores from Indian Bank as reflected in thebalance sheet including interest accrued thereon remain overdue as details below

Term Loan III Rs. 60.43 crores since 31.12.2009

Term Loan IV Rs. 69.42 crores since 30.09.2008

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph 3 (ix) of the Order is not applicable.

x. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Compnay has not paid managerialremuneration and therefore compliance in accordance with the requisite approvals manadatedby the provisions of Section 197 read with Schedule V to the Act does not arise.

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.

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 engaged in housing finance under NationalHousing Bank and falling udner the exempted category of RBI Act. Therefor the company isnot required to be registered under Section 45-I-A of the Reserve Bank of India Act 1934.

For Anand & Ponnappan
Chartered Accountants
Firm's Registration Number 000111S
CA R. Ananda Kumar
Chennai Partner
24.05.2017 M.No. 021919

Annexure B to the Auditor's Report

On the statement of the matters specified in the directions of Comptroller and AuditorGeneral of India

1. According to the information and explanations given to us there are no free holdand leasehold land in the books of account of the company and reporting requirement doesnot arise.

2. According to the information and explanations given to us during the year underaudit there are no cases of waiver / write off of debts / loans / interest except thefollowing. ? Value of investment in equity of Hamco Mining & Smelting Limitedamounting to Rs. 407050/- ? Balance outstanding under Emmem Construction towards legal feeincurred Rs. 51975/-

3. As the Company is falling under financial sevice the requirement of maintenance ofrecords for inventory does not arise. According to the information and explanations givento us no assets have been received as gift / grant from Government or other authorities.

For Anand & Ponnappan
Chartered Accountants
Firm's Registration Number 000111S
CA R. Ananda Kumar
Chennai Partner
24.05.2017 M.No. 021919

ANNEXURE-C

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 Ind Bankhousing Limited ("the Company") as of 31 March 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 InternalFinancial

Controls over Financial Reporting issued by the Institute of Chartered Accounants ofIndia (‘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 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 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 control 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 thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial control system over financialreporting.

Meaning of Internal Financial Controls over Financial Reporting A Company's internalfinancial control over financial reporting is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A Company's internal financial control over financial reportingincludes 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 thatthe transactions are recorded as necessary to permit preparation of financial statement inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with the authorisations ofmanagement and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Company's assets that could have a material effect on the financial statements.

Inherent Limitation of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of the 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

According to the information and explanation given to us the Company has notestablished its internal financial control over financial reporting on criteria based onor considering 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.

More over it is informed that the Company's incurring expenses only for its day to dayoperations after obtaining approval from the Managing Director such as Salary and otherStatutory Expenses as it is engaged only in recovery of existing housing loans. Controlover its financial transaction are commensurate with its level of operations.

In our opinion the fundamental requirement of effective internal control is a processeffected by people that support the organisation in several ways enabling it to providereasonable assurance regarding risk and to assist in the achievement of objectives. TheCompany being smaller less complex and have less formal documentation regarding theoperation of its controls. However we applied testing controls through inquiry combinedwith other procedures such as observation of activities inspection of less formaldocumentation or performance of central controls to provide sufficient evidence aboutwhether the control is effective. We believe that that Audit evidence we have obtained issufficient and appropriate to provide a basis for our Audit opinion on the

Company's internal financial controls system over financial reporting.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the standalone financial statements of theCompany and the disclaimer does not affect our opinion on the standalone financialstatements of the Company. In our opinion the Company has in all material respects anadequate internal financial control system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31stMarch 2017.

For Anand & Ponnappan
Chartered Accountants
Firm's Registration Number 000111S
CA R. Ananda Kumar
Chennai Partner
24.05.2017 M.No. 021919