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Indiabulls Housing Finance Ltd.

BSE: 535789 Sector: Financials
NSE: IBULHSGFIN ISIN Code: INE148I01020
BSE LIVE 15:40 | 22 Sep 1242.60 -39.75
(-3.10%)
OPEN

1283.00

HIGH

1283.00

LOW

1232.20

NSE 15:53 | 22 Sep 1242.35 -39.50
(-3.08%)
OPEN

1275.00

HIGH

1275.00

LOW

1231.20

OPEN 1283.00
PREVIOUS CLOSE 1282.35
VOLUME 154421
52-Week high 1323.40
52-Week low 616.05
P/E 17.88
Mkt Cap.(Rs cr) 52,736
Buy Price 0.00
Buy Qty 0.00
Sell Price 1242.60
Sell Qty 69.00
OPEN 1283.00
CLOSE 1282.35
VOLUME 154421
52-Week high 1323.40
52-Week low 616.05
P/E 17.88
Mkt Cap.(Rs cr) 52,736
Buy Price 0.00
Buy Qty 0.00
Sell Price 1242.60
Sell Qty 69.00

Indiabulls Housing Finance Ltd. (IBULHSGFIN) - Auditors Report

Company auditors report

TO THE MEMBERS OF INDIABULLS HOUSING FINANCE LIMITED

REPORT ON THE STANDALONE FINANCIAL STATEMENTS

We have audited the accompanying standalone financial statements of INDIABULLS HOUSINGFINANCE LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss and the Cash Flow Statement for the yearthen ended and a summary of the 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 Standardsprescribed under section 133 of the Act as applicable.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgements 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 standalone financial statementsbased on our audit.

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 and the Order under section 143 (11)of the Act.

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 require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgement 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 control 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.

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.

OPINION

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 of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended on that date.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. 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 prescribed under section 133 of the Act as applicable.

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 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 A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

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 financialposition in its financial statements-- Refer Note 29(a) (b) and (d) to the financialstatements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses on long-term contracts including derivativecontracts- Refer Note 26(1) to the financial statements.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants

(Firm's Registration No. 117366W/W-100018)

A. Siddharth Partner

(Membership No. 31467)

MUMBAI 25th April 2016

Annexure A to the Independent Auditor's Report (Referred to in paragraph (f) under'Report on Other Legal and Regulatory Requirements' of our report of even date)

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 INDIABULLSHOUSING FINANCE LIMITED ("the Company") as of 31st March 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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 Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

AUDITOR'S 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

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 judgement 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.

OPINION

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For DELOITTE HASKINS & SELLS LLP

Chartered Accountants

(Firm's Registration No. 117366W/W-100018)

A. Siddharth

Partner

(Membership No. 31467)

MUMBAI 25th April 2016

Annexure B to the Independent Auditor's Report

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) The Company has a program of verification of fixed assets to cover all the items ina phased manner over a period of three years which in our opinion is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programcertain fixed assets were physically verified by the Management during the year. Accordingto the information and explanations given to us no material discrepancies were noticed onsuch verification.

c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed / conveyance deed providedto us we report that the title deeds comprising all the immovable properties of landand buildings which are freehold are held in the name of the Company as at the balancesheet date except the following:

1. Freehold land located at Lal Dora Village. of Bijwasan New Delhihaving carryingamount of Rs. 1131270 as at 31st March 2016 mortgaged as security towards

Secured Non-Convertible Debentures issued by the Company.

2. Freehold land located at District. Mehsana Ahmedabad having carrying amount of Rs.912000 as at 31st March 2016 mortgaged as security towards Secured Non-ConvertibleDebentures issued by the Company. wherein the title deeds are in the name of IndiabullsFinancial Services Limited (erstwhile Holding

Company) that was merged with the Company under Section 391 to 394 of the CompaniesAct 1956 in terms of the approval of the Honorable High Court of judicature.

Further based on the information and explanations given to us immovable propertyconsisting of a freehold land and a flat (building) whose title deeds have been mortgagedas security towards Secured Non-Convertible Debentures issued by the Company and are heldin the name of the Company.

ii. The Company does not have any inventory and hence reporting under clause (ii) ofthe Order is not applicable.

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. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable. The Company being a housing finance company nothing containedin section 186 except sub-section (1) shall apply.

v. According to the information and explanations given to us the Company has notaccepted any deposit from the public during the year within the meaning of Sections 73 to76 or any other relevant provisions of the Companies Act 2013.

vi. Having regard to the nature of the Company's business / activities reporting underclause (vi) of the Order pertaining to maintenance of cost records is not applicable.

vii. According to the information and explanations given to us in respect of statutorydues:

a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income-tax Service Tax cess andother material statutory dues applicable to it to the appropriate authorities. During theyear there were no dues payable in respect of Sales Tax Value Added Tax Customs Dutyand Excise Duty.

b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income-tax Sales Tax Service Tax cess and other material statutorydues in arrears as at 31st March 2016 for a period of more than six months from the datethey became payable.

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and dues to debenture

c) Details of dues of Income-tax and Value Added Tax which have not been deposited ason 31st March 2016 on account of disputes are given below:

Name of Statute Nature of Dues Forum where Dispute is Pending Period to which the Amount Relates Amount

Involved

(Rs.)

Amount

Unpaid

(Rs.)

The Income- Tax Act 1961 Disallowance u/s. 14A Income Tax Appellate Tribunal Year ended 31st March 2008 2414210 2414210
The Income- Tax Act 1961 Disallowance u/s. 14A Income Tax Appellate Tribunal Year ended 31st March 2009 12301239 12301239
The Income- Tax Act 1961 Disallowance u/s. 14A Income Tax Appellate Tribunal Year ended 31st March 2011 12737519 12737519
The Income- Tax Act 1961 Disallowance u/s. 14A and 32(1) Commissioner of Income tax (Appeals) Year ended 31st March 2012 11625706 11625706
The Rajasthan Value Added Tax Act 2003 Disallowance u/s. 25 55 56 & 61 Rajasthan High Court Year ended 31st March 2008 to 31st October 2012 14505873 8274804
The Rajasthan Value Added Tax Act 2003 Disallowance u/s. 25 55 & 61 The Appellate Authority - II Commercial Taxes Jaipur From 01st November

2012 to 31st December 2014

1240200 768000

holders. During the year the Company has not taken any loans or borrowings fromGovernment.

ix. According to information and explanation given to us term loans have been appliedby the Company during the year for the purposes for which they were raised other thantemporary deployment pending application of proceeds. During the year the Company has notraised moneys by way of initial public offer or further public offer (including debtinstruments).

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no fraud on the Company by its officers or employeeshas been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of theOrder is not applicable.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions

have been disclosed in the financial statements etc. as required by the applicableaccounting standards.

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 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 provisions of section 192 of theCompanies Act 2013 are not applicable.

xvi. The Company is not required to be registered under section 45-I of the ReserveBank of India Act 1934.

For DELOITTE HASKINS & SELLS LLP Chartered Accountants (Firm's Registration No.117366W/W-100018)

A. Siddharth Partner

(Membership No. 31467) MUMBAI 25th April 2016