To the Members of Indiabulls Real Estate Limited
Report on the Consolidated Financial Statements
1. We have audited the accompanying consolidated financial statements of IndiabullsReal Estate Limited ("the Holding Company") and its subsidiaries (the HoldingCompany and its subsidiaries together referred to as "the Group") and itsassociates which comprise the Consolidated Balance Sheet as at March 31 2016 theConsolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.
Managements Responsibility for the Consolidated Financial Statements
2. The Holding Companys Board of Directors is responsible for the preparation ofthese consolidated financial statements in terms of the requirements of the Companies Act2013 ( "the Act") that give a true and fair view of the consolidated financialposition consolidated financial performance and consolidated cash flows of the Group andits associates in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under Section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014 (as amended). The Holding Companys Boardof Directors and the respective Board of Directors/management of the subsidiariesincluded in the Group and of its associates are responsible for the design implementationand maintenance of internal control relevant to the preparation and presentation of thefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error. Further in terms with the provisions of theAct the respective Board of Directors of the Holding Company and its subsidiaries andassociate companies which are incorporated in India are responsible for maintenance ofadequate accounting records; safeguarding the assets; preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements which have been used for thepurpose of preparation of the consolidated financial statements by the directors of theHolding Company as aforesaid.
3. Our responsibility is to express an opinion on these consolidated financialstatements based on our audit.
4. While conducting the audit we have taken into account the provisions of the Actthe accounting and auditing standards and matters which are required to be included in theauditors report under the provisions 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 whetherthe consolidated financial statements are free from material misstatement.
6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the consolidated financial statements. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the consolidated financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial controls relevantto the Holding Companys preparation of the consolidated financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the HoldingCompanys Board of Directors as well as evaluating the overall presentation of theconsolidated financial statements.
7. We believe that the audit evidence obtained by us and the audit evidence obtained bythe other auditors in terms of their reports referred to in sub-paragraph 9 of the OtherMatter paragraph below is sufficient and appropriate to provide a basis for our auditopinion on the consolidated financial statements.
8. In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of the reports of the other auditors on thefinancial statements of the subsidiaries and its associates as noted below the aforesaidconsolidated financial statements give the information required by the Act in the mannerso required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the consolidated state of affairs of the Group and itsassociates as at March 31 2016 and their consolidated profit and their consolidated cashflows for the year ended on that date.
9. We did not audit the financial statements of certain subsidiaries included in theconsolidated financial statements whose financial statements reflect total assets (aftereliminating intra-group transactions) of Rs123274869788 as at March 31 2016 totalrevenues (after eliminating intra-group transactions) of Rs8493210978 and net cashflows amounting to Rs3241654230 for the year ended on that date. The consolidatedfinancial statements also include the Groups share of net loss of Rs21934277 forthe year ended March 31 2016 as considered in the consolidated financial statements inrespect of certain associates whose financial statements have not been audited by us.These financial statements have been audited by other auditors whose reports have beenfurnished to us by the Management and our opinion on the consolidated financialstatements in so far as it relates to the amounts and disclosures included in respect ofthese subsidiaries and associates and our report in terms of sub-section (3) of Section143 of the Act in so far as it relates to the aforesaid subsidiaries and associates isbased solely on the reports of the other auditors.
Our opinion on the consolidated financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of the above matters withrespect to our reliance on the work done by and the reports of the other auditors.
Report on Other Legal and Regulatory Requirements
10. As required by Section 143(3) of the Act and based on the auditors reportsof the subsidiaries and associates we report to the extent applicable 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 of the aforesaidconsolidated financial statements;
b) In our opinion proper books of account as required by law relating to preparationof the aforesaid consolidated financial statements have been kept so far as it appearsfrom our examination of those books and the reports of the other auditors;
c) The consolidated financial statements dealt with by this Report are in agreementwith the relevant books of account maintained for the purpose of preparation of theconsolidated financial statements; d) In our opinion the aforesaid consolidated financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the
Companies (Accounts) Rules 2014 (as amended);
e) On the basis of the written representations received from the directors of theHolding Company as on March 31 2016 taken on record by the Board of Directors of theHolding Company and the reports of the other statutory auditors of its subsidiarycompanies and associate companies incorporated in India none of the directors of theGroup companies and its associate companies incorporated in India is disqualified as onMarch 31 2016 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 Holding Company its subsidiary companies and associate companies whichare companies incorporated in India as of March 31 2016 in conjunction with our auditof the consolidated financial statements of the group and its associates for the yearended on that date and our report dated April 25 2016 as per annexure A expressed anunqualified opinion; and g) With respect to the other matters to be included in theAuditors Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information andaccording to the explanations given to us:
(i) as detailed in note 27(b) the consolidated financial statements disclose theimpact of pending litigations on the consolidated financial position of the Group and itsassociates;
(ii) the Group and its associates did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; and
(iii) there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Holding Company. There were no amountswhich were required to be transferred to the Investor Education and Protection Fund bysubsidiary and associate companies incorporated in India.
| ||For Walker Chandiok & Co LLP |
| ||(Formerly Walker Chandiok & Co) |
| ||Chartered Accountants |
|Firms Registration No.: 001076N/N500013 ||per Neeraj Sharma |
|Place: Mumbai ||Partner |
|Date: April 25 2016 ||Membership No.: 502103 |