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Ind Bank Housing Ltd.

BSE: 523465 Sector: Financials
NSE: N.A. ISIN Code: INE969D01012
BSE LIVE 15:40 | 18 Sep 18.80 0.05
(0.27%)
OPEN

17.85

HIGH

18.90

LOW

17.85

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 17.85
PREVIOUS CLOSE 18.75
VOLUME 3176
52-Week high 39.55
52-Week low 11.00
P/E
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 17.85
CLOSE 18.75
VOLUME 3176
52-Week high 39.55
52-Week low 11.00
P/E
Mkt Cap.(Rs cr) 19
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

The Members of Ind Bank Housing Limtied Report on the Financial Statements

We have audited the accompanying financial statements of Ind Bank Housing Limited("the Company") which comprise the Balance Sheet as at March 31 2016 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 mistatementof the financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the

Company’s preprataion of the financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company’s Directors as wellas evaluating the overall preparation of the financial statements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the stand 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 thestate of affiars of the Company as at 31 March 2016 b. In the case of Profit and Lossaccount of the loss for the year ended on that date and c. In the case of cash flowstatement 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 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofSection 143 of the Act 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(5) we have included in the Annexure-B a satement on thematters 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 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 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 beincluded in the Auditor’s Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 in our opinion and to the best of our information and accoringto 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. There are no amounts that are required to be transferred to the Investor Educationand Protection Fund by the Company subject to Note No. 19(j) to the financial statements.

For Anand & Ponnappan
Chartered Accountants
FRN 000111S
CA R. Ananda Kumar
Chennai Partner
05.05.2016 M.No. 021919

Annexure A to the Auditor’s Report

The Annexure referred to in Independent Auditor’s Report to the members of theCompany on the financial statements for the year ended 31 March 2016. We report that: i.The Company has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets. These fixed assets have been physically verified bythe management at reasonable intervals and no material discrepancies were noticed on suchverification. ii. The Company is a service company primarily rendering financialservices. Thus paragraph 3(ii) of the Order on ‘inventory’ is not applicable tothe Company iii. The Company has now stopped accepting deposits from the public. It hasrepaid all the deposits accepted in the earlier years in compliance with the provisions ofthe Companies Act 1956 and the rules framed and directions issued by the National HousingBank (NHB) except Rs. 6.33 lakhs. This amount represents the deposit matured but withheldas Central Bureau of Investigation Anti-Corruptn Branch Sastri Bhavan Chennai has givendirection not to release till the deposit of the pending cases. iv. The Central Governmenthas not prescribed the maintenance of cost records under section 148(1) of the Act forany of the services rendered by the Company. v. (vii) (a) According to the information andexplanations given to us and on the basis of our examination of the records for theCompany amounts deducted /accrued in the books of account in respect of undisputedstatutory dues including provident fund income-tax sakes tax value added tax duty ofcustoms service tax cess and other material statutory dues have been regulatlydesposited during the year by the Company with the appropriate authorities. As explainedto us the Company did not have any dues on account of employees’ state insurance andduty of excise. According to the information and explanations given to us no undisputedamounts payable in respect of provident fund income tax sales tax value addded taxduty of customs service tax cess and other material statutory dues were in arrears as at31 March 2016 for a period of more than six months from the date they became payableexcept Rs.19.02 lakhs as reflected in the books of accounts towards income tax for the AY2005-06. vi. (b) According to the information and explanations given to us there are nomaterial dues of duty and customs which have not been deposited with the appropriateautorities on account of any dispute. However accoring to information and explanationsgiven to us the following dues of income tax have not been deposited by the Company onaccount of dispute.

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

vii. The outstanding loans of Rs. 117.00 Crores from Indian Bank as reflected in thebalance sheet including interest accrued thereon remain overdue as details below Term LoanIII Rs. 54.56 Crores since 31.12.2009 Term Loan IV Rs. 62.44 Crores since 30.09.2008 viii.(ix) The Company did not raise any money by way of initial public offer or further publicoffer (including debt instruments) and term loans during the year. Accordingly paragraph3 (ix) of the Order is not applicable. ix. According to the information and explanationsgiven to us and based no material fraud by the Company or on the Company by its officersor employees has been noticed or reported during the course of our audit. x. According tothe information and explanations given to us and based on our examination of the recordsof the Company the Compnay has not paid managerial remuneration and therefore compliancein accordance with the requisite approvals manadated by the provisions of Section 197 readwith Schedule V to the Act does not arise. xi. In our opinion and according to theinformation and explanations given to us the Company is not a nidhi company. Accordinglyparagraph 3(xii) of the Order is not applicable. xii. According to the information andexplanations given to us and based on our examination of the records of the Companytransactions with the related parties are in compliance with Sections 177 and 188 of theAct where applicable and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards. xiii. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year. xiv. According to theinformation and explanations given to us and based on our examination of the records ofthe Company the Company has not entered into non-cash transactions with directors orpersons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.xv. The Company is engaged in housing finance under National Housing Bank and fallingudner the exempted category of RBI Act. Therefor the company is not required to beregistered under Section 45-IA of the Reserve Bank of India Act 1934.

For Anand & Ponnappan
Chartered Accountants
Firm’s Registration Number 000111S
CA R. Ananda Kumar
Chennai Partner
05.05.2016 M.No. 021919

Annexure B to the Auditor’s Report

On the statement of the matters specified in the directions of Comprtroller 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.

3. As the Company is falling under fiancial 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.

4. As informed to us the number of pending legal / arbitration cases as on 31.03.2016are 61. These are 52 individual housing loans amount to Rs. 64.52 lakhs 2 project loansamountint to Rs. 671.54 lakhs and 7 Inter Corporate Deposits amounting to Rs. 694.47lakhs. The cases are pending before various judicial forums at various stages of thejudicial process. The management of the Company is closely monitoring the pending cases.

5. It is informed that the Company has not been selected for disinvestment andreporting requirement thereunder does not arise.

For Anand & Ponnappan
Chartered Accountants
Firm’s Registration Number 000111S
CA R. Ananda Kumar
Chennai Partner
05.05.2016 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 2016 in conjunctiion 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 Reportingissued by the Institute of Chartered Accounants 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 fo 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 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 that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlsystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting A Company’sinternal financial control over financial reporting is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A Company’s internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accuratelyand fairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that the transactions are recorded as necessary topermit preparation of financial statement in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with the authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company’s assets that could havea material effecton 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

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 31 March 2016 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 Anand & Ponnappan
Chartered Accountants
Firm’s Registration Number 000111S
CA R. Ananda Kumar
Chennai Partner
05.05.2016 M.No. 021919

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THECOMPANIES ACT 2013 ON THE FINANCIAL STATEMENTS OF IND BANK HOUSING LIMITED FOR THE YEARENDED 31 MARCH 2016.

The preparation of financial statements of Ind Bank Housing Limited for the year ended31 March 2016 in accordance with the financial reporting framework prescribed under theCompanies Act 2013 (Act) is the responsibility of the management of the company. Thestatutory auditor appoined by the Comptroller and Auditor General of India under Section139(5) of the Act is responsible for expressing opinion on the financial statements underSection 143 of the Act based on independent audit in accordance with the standards onauditing prescribed under section 143(10) of the Act. This is stated to have been done bythem vide their Audit-Report dated 05.05.2016. I on behalf of the Comptroller and AuditorGeneral of India have decided not to conduct the supplementary audit of the financialstatements of Ind Bank housing Limited for the year ended 31 March 2016 under section143(6)(a) of the Act.

For and on behalf of the
Comptroller & Auditor General of India
(G. SUDHARMINI)
Chennai PRINCIPAL DIRECTOR OF COMMERCIAL AUDIT &
27.06.2016 EX-OFFICIO MEMBER AUDIT BOARD CHENNAI