To the members of Indiabulls Real State Limited
Report on the Standalone Financial Statements
1. We have audited the accompanying standalone financial statements of Indiabulls RealEstate Limited (the Company') which comprise the Balance Sheet as at 31 March 2017the Statement of Profit and Loss (including Other Comprehensive Income) the Cash FlowStatement and the Statement of Changes in Equity for the year then ended and a summary ofthe significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
2. 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 state ofaffairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (Ind AS') specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
4. 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.
5. 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 whetherthese standalone financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 controls 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.
7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these standalone financial statements.
8. 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 theaccounting principles generally accepted in India including Ind AS specified under Section133 of the Act of the state of affairs (financial position) of the Company as at 31 March2017 and its loss (financial performance including other comprehensive income) its cashflows and the changes in equity for the year ended on that date.
9. The Company had prepared separate sets of statutory financial statements for theyear ended 31 March 2016 and 31 March 2015 in accordance with Accounting Standardsprescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014 (as amended) on which we issued auditor's reports dated 25 April
2016 and 21 May 2015 respectively to the shareholders of the Company. These financialstatements have been adjusted for the differences in the accounting principles adopted bythe Company on transition to Ind AS which have also been audited by us. Our opinion isnot modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
10. As required by the Companies (Auditor's Report) Order 2016 (the Order')issued by the Central Government of India in terms of Section 143(11) of the Act we givein the Annexure A a statement on the matters specified in paragraphs 3 and 4 of theOrder.
11. Further to our comments in Annexure A as required by Section 143(3) of the Act wereport that:
a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose 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 standalone financial statements dealt with by this report are in agreement withthe books of account;
d) in our opinion the aforesaid standalone financial statements comply with Ind ASspecified under Section 133 of the Act;
e) on the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on 31 March2017 from being appointed as a director in terms of Section 164(2) of the Act;
f) we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as on 31 March 2017 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated 27 April 2017 as per Annexure B expressed an unqualified opinion; and g) withrespect to the other matters to be included in the Auditor's Report in accordance withRule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) in our opinion andto the best of our information and according to the explanations given to us: i. theCompany as detailed in Note 38A
(ii) to the standalone financial statements has disclosed the impact of pendinglitigations on its financial position; ii. the Company did not have any long-termcontracts including derivative contracts for which there were any material foreseeablelosses; iii. there has been no delay in transferring amounts required to be transferredto the Investor Education and Protection Fund by the Company; and iv. the Company asdetailed in Note 16(ii) to the standalone financial statements has made requisitedisclosures in these standalone financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8 November 2016 to 30 December 2016.
Based on the audit procedures performed and taking into consideration the informationand explanations given to us in our opinion these are in accordance with the books ofaccount maintained by the Company.
For Walker Chandiok& Co LLP
Firm's Registration No.: 001076N/N500013
per Neeraj Sharma
Membership No.: 502103
Place : Gurugram
Date : 27 April 2017
Annexure A to the Independent Auditor's Report of even date to the members ofIndiabulls Real Estate Limited on the standalone financial statements for the yearended 31 March 2017
Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets comprising ofproperty plant and equipment and other intangible assets.
(b) The fixed assets comprising of property plant and equipment and other intangibleassets have been physically verified by the management during the year and no materialdiscrepancies were noticed on such verification. In our opinion the frequency ofverification of the fixed assets comprising of property plant and equipment and otherintangible assets is reasonable having regard to the size of the Company and the nature ofits assets.
(c) The Company does not hold any immovable property (in the nature of fixedassets comprising of property plant and equipment'). Accordingly the provisions ofclause 3(i)(c) of the Order are not applicable.
(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies between physicalinventory and book records were noticed on physical verification. (iii) The Company hasgranted unsecured loans to companies covered in the register maintained under Section 189of the Act; and with respect to the same: (a) in our opinion the terms and conditions ofgrant of such loans are not prima facie prejudicial to the company's interest.
(b) receipt of the principal amount and the interest is regular except for the loansgiven to companies which are interest free; and (c) there is no overdue amount in respectof loans granted to such companies.
(iv) In our opinion the Company has complied with the provisions of Sections 185 and186 of the Act in respect of loans investments guarantees and security.
(v) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable. (vi)We have broadly reviewed the books of account maintained by the Company pursuant to theRules made by the Central Government for the maintenance of cost records under sub-section(1) of Section 148 of the Act in respect of Company's products/services and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.
(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees' state insurance income-tax sales-tax service taxduty of customs duty of excise value added tax cess and other material statutory duesas applicable to the appropriate authorities.
Further no undisputed amounts payable in respect thereof were outstanding at theyear-end for a period of more than six months from the date they become payable.
(b) The dues outstanding in respect of income-tax sales-tax service-tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:
|Name of the statute ||Nature of dues ||Amount ( Rs in lakhs) ||Amount paid under protest ( Rs in lakhs) ||Period to which the amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Disallowance under section 14A ||146.26 ||- ||Assessment Year 2009-10 ||Income Tax Appellate Tribunal (ITAT) |
|Income Tax Act 1961 ||Disallowance under section 14A ||161.88 ||- ||Assessment Year 2010-11 ||Income Tax Appellate Tribunal (ITAT) |
|Income Tax Act 1961 ||Disallowance under section 14A ||213.05 ||- ||Assessment Year 2011-12 ||Income Tax Appellate Tribunal (ITAT) |
|Income Tax Act 1961 ||Disallowance under section 14A and interest under section 234C ||1272.21 ||- ||Assessment Year 2012-13 ||Income Tax Appellate Tribunal (ITAT) |
|Income Tax Act 1961 ||Disallowance of employee stock option expense and under section 14A and section 32 ||247.66 ||- ||Assessment Year 2013-14 ||Commissioner of Income Tax Appeals |
(viii) The Company has not defaulted in repayment of loans or borrowings to anyfinancial institution or a bank or any dues to debenture-holders during the year. Furtherthe Company has no loans or borrowings payable to government during the year.
(ix) The Company did not raise moneys by way of initial public offer or further publicoffer. In our opinion the Company has applied money raised by issuance of non-convertibledebt instruments and the term loans for the purposes for which those were raised.
(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.
(xi) Managerial remuneration has been provided by the Company in accordance with therequisite approvals mandated by the provisions of Section 197 of the Act read withSchedule V to the Act.
(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.
(xiii) In our opinion all transactions with the related parties are in compliance withSections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable Ind AS.
(xiv) During the year the Company has made preferential allotment of equity shares(conversion of share warrants issued in previous year).
In respect of the same in our opinion the Company has complied with the requirementof section 42 of the Act and the amounts raised have been used for the purposes for whichthe funds were raised.
(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.
(xvi) As detailed in Note 44 to the financial statement the Company is not required tobe registered under section 45-IA of the Reserve Bank of India Act 1934.
For Walker Chandiok & Co LLP
Firm's Registration No.: 001076N/N500013
per Neeraj Sharma
Membership No.: 502103
Place : Gurugram
Date : 27 April 2017