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SRG Housing Finance Ltd.

BSE: 534680 Sector: Financials
NSE: N.A. ISIN Code: INE559N01010
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VOLUME 250
52-Week high 249.25
52-Week low 66.00
P/E 73.28
Mkt Cap.(Rs cr) 263
Buy Price 0.00
Buy Qty 0.00
Sell Price 202.25
Sell Qty 4.00
OPEN 205.00
CLOSE 205.00
VOLUME 250
52-Week high 249.25
52-Week low 66.00
P/E 73.28
Mkt Cap.(Rs cr) 263
Buy Price 0.00
Buy Qty 0.00
Sell Price 202.25
Sell Qty 4.00

SRG Housing Finance Ltd. (SRGHOUSING) - Auditors Report

Company auditors report

To

The Members

SRG Housing Finance Limited

We have audited the accompanying financial statements of SRG Housing Finance Limited("the Company") which comprise the Balance Sheet as at 31st March2016 the Statement of Profit and Loss and the Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory 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 preparation ofthe financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting the frauds and other irregularities; selection and application ofappropriate 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 there under.

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 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 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 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 issufficient and appropriate to provide a basis for our audit opinion on the financialstatements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a.) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 31st 2016.

b.) In the case of the Statement of Profit and Loss of the profit for the year endedon that date; and

c.) In the case of the Cash Flow Statement of the cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as issued by Central Government of India in terms of sub section (11) of section 143 ofCompanies Act 2013 (18 of 2013) we hereby give in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. 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 purpose of our audit;

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;

c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

d. In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014 ; and

e. On the basis of written representations received from the directors as on 31st March2016 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31st March 2016 from being appointed as a director in terms of subsection (2) of section 164 of the Companies Act 2013.

f. On the basis of the information and explanafion of the Company provided to us and inour opinion the Company has adequate internal financial controls systems over financialreporting and such internal financial control over financial reporfing were operatingeffectively as at March 31 2016 based on the internal control over financial reporfingcriteria established by the Company. Further refer our separate report in "AnnexureA".

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 does not have any pending litigations which would impact its financialposition;

ii. The Company did not have any long-term contracts including derivafives contractsfor which there were any material foreseeable losses;

iii. As represented by the company there is no amount required to be transferred toInvestor Education and Protection Fund by the Company.

For Valawat Jha Pamecha & Co.
Chartered Accountants
(FRN 008265 C)
Place: Udaipur
Dated: 12.04.2016 Sd/-
Jinendra Jain
Partner
M.No.072995

Annexure to the Auditors' Report

[Referred to in paragraph pertaining to "Report on Other Legal andRegulatory Requirement" of our Report of even date to the members of SRG HOUSINGFINANCE LIMITED on the financial statements for the year ended 31st March2016]

1. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) Fixed Assets have been physically verified by the management during the year and nodiscrepancies between the book records and the physical inventory have been noticed. Inour opinion the frequency of verification is reasonable.

(c) The company does not have any immoveable property.

2. According to the information and explanations given to us the Company has nothaving any Inventory and therefore paragraph 2 of the Order is not applicable.

3. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited Liability Partnershipsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013; and therefore paragraph 3 of the Order is not applicable.

4. According to information and explanations given to us the Company has complied withthe provisions of section 185 and 186 of the Companies Act 2013 in respect of loansinvestments guarantees and security.

5. According to information and explanations given to us the Company has not acceptedany deposits during the year.

6. As informed to us the Central Government has not prescribed maintenance of costrecords under sub - section (1) of Section 148 of the Act in respect of the activitiescarried on by the Company.

7. a) According to the information and explanations given to us and records of theCompany examined by us in our opinion the Company is generally regular in depositingundisputed statutory dues including provident fund employees state insurance income taxsales tax value added tax service tax custom duty excise duty cess and any otherstatutory dues as applicable with the appropriate authorities. There are no undisputedstatutory dues payable for a period of more than six months from the date they becamepayable as at 31st March 2016.

b) According to the information and explanations given to us and the records of theCompany examined by us there are no dues of income tax sales tax wealth tax servicetax customs duty excise duty value added tax as at 31st March 2016 whichhas not been deposited on account of dispute.

8. According to the information and explanations given to us and records of the Companyexamined by us the company has not defaulted in repayment of loans or borrowing to anyfinancial institution bank Government or dues to debenture holders.

9. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) during the year. The Term loans obtained during theyear were applied by the Company for the purpose for which they were obtained.

10. According to the information and explanations given to us we have not noticed orreported any fraud by the Company or any fraud on the Company by its officer or employeesduring the year.

11. The managerial remuneration has been paid or provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.

12. The company is not a Nidhi Company hence this clause of the Caro 2016 is notapplicable to the Company.

13. According to the information and explanations given to us all transactions with therelated parties are in compliance with sections 177 and 188 of Companies Act 2013 whereapplicable and the details have been disclosed in the Financial Statements etc. asrequired by the applicable accounting standards.

14. According to the information and explanations given to us the company has not madeany preferential allotment or private placement of shares or fully or partly convertibledebentures during the year under review.

15. According to the information and explanations given to us the company has notentered into any noncash transactions with directors or persons connected with him underprovisions of section 192 of Companies Act 2013.

16. The company is not required to be registered under section 45-lA of the ReserveBank of India Act 1934 hence this clause of the Caro 2016 is not applicable to theCompany.

17. As per the Housing Finance Companies (NHB) Directions 2010 we report that:

i. The company is registered with NHB under section 29 of NHB Act 1987 before 12thJune 2000 vide registration no. 02.0032.02 dated 24.05.2002 /02.0056.04 dated 15.04.2004.

ii. The company has complied with the provisions of section 29C of the National HousingBank Act 1987.

iii. The capital adequacy ratio has been shown in the notes of the accounts and whichis as per the norms.

iv. In case of housing finance company not accepting public deposit:-

a. The Board of Directors has passed resolution for not accepting public deposit.

b. The Company has not accepted any public deposit during the year of audit 2015-2016.

c. The Company has complied with prudential norms relating to income recognitionaccounting standards assets classification and provisioning for bad and doubtful debts asapplicable to it.

For Valawat Jha Pamecha & Co.
Chartered Accountants
(FRN 008265 C)
Place: Udaipur
Dated: 12.04.2016 Sd/-
Jinendra Jain
Partner
M.No.072995

Annexure-A

To the Independent Auditor's Report of even date on the financial statements of SRGHousing Finance Limited

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 SRG HousingFinance Limited ("the Company") as of March 31 2016 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 Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants 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 safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the 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") and the Standards on Auditing issued by ICAI andprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated 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 authorizations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 March 31 2016 based on"the internal control over financial reporting criteria established by the Companyconsidering 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".

For Valawat Jha Pamecha & Co.
Chartered Accountants
(FRN 008265 C)
Place: Udaipur
Dated: 12.04.2016 Sd/-
Jinendra Jain
Partner
M.No.072995