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Ind Bank Housing Ltd.

BSE: 523465 Sector: Financials
NSE: N.A. ISIN Code: INE969D01012
BSE 00:00 | 06 Dec 28.85 -1.05
(-3.51%)
OPEN

30.95

HIGH

30.95

LOW

28.85

NSE 05:30 | 01 Jan Ind Bank Housing Ltd
OPEN 30.95
PREVIOUS CLOSE 29.90
VOLUME 342
52-Week high 53.45
52-Week low 20.65
P/E
Mkt Cap.(Rs cr) 29
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 30.95
CLOSE 29.90
VOLUME 342
52-Week high 53.45
52-Week low 20.65
P/E
Mkt Cap.(Rs cr) 29
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

To

The Members of

IND BANK HOUSING LTD

Opinion

We have audited the accompanying Standalone IndAS financial statements of IND BANKHOUSING LIMITED ("the company") which comprises the Balance Sheet as at 31stMarch 2020 the Statement of Profit and Loss Account (including other comprehensiveincome the Cash Flow Statement and statement of changes in Equity for the year the nended and summary of significant accounting policies and other explanatory information)herein after referred to as "Standalone Ind AS financial statements".

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity :with theaccounting principles generally accepted in India including IndAS of the financialposition of the company asat31' March 2020 and its financial performance including othercomprehensive income its cash flow and the changes in equity for the year ended on thatdate.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing specified underSec.143(10) of the Act. Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement. Our responsibility is to express anopinion on the se financial statements based on our Audit. We have taken into account theprovisions of the Act the accounting and auditing Standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rulesmade the re under. We are independent of the company in accordance with the Code of Ethicsissued by ICAI together with the independence requirements that are relevant to our auditunder the provisions of the Act and the Rules made the re under and we have fulfilled ourother ethical responsibilities in accordance with the se requirements and the ICAI's Codeof Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Standalone financialstatements.

Key Audit Matters:

Sl. No. Key Matters Auditor's Response
1 Pending litigations The company has disclosed the imp Act of pending litigations on its financial position in its financial statements - as disclosed vide Note No. 24(I) to the financial statements.
2 (a) Income-Tax Dispute Income-Tax of Rs.432 Lakhs for the Assessment Year: 1999-2000 which is pending before Madras High Court -as disclosed vide Note No. 24(i) to the financial statements.
2 (b) Interest on Interest tax refunds Amount of Rs.241 Iakhs for the interest tax assessment years 1993-94 1994-95 1997-98 1998-99 and 2000-01 which are pending before the Income tax department - as disclosed vide Note No. 24(p) to the financial statements.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of the se IndAS financial statements that give a true and fair view of thefinancial position financial performance and cash flows and changes in equity of theCompany 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.

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 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.

The Board ofDirectors are responsible for overseeing the company's financial reportingprocess Auditor's Responsibility

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Standalone Ind AS financial statements. 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. In making thoserisk assessments the auditor considers internal financial controls relevant to theCompany's preparation of the Standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the Standalone IndAS 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 IndAS financial statements.

As part of an audit in accordance with SAs we exercise professional judgement andmaintain professional skepticism throughout the audit. We also

• Identify and assess the risks of material misstatement of the Standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. the risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from

error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained upto the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

• Evaluate the overall presentation structure and content of the Standalonefinancial statements including the disclosures and whether the Standalone financialstatements represent the underlying trans Actions and events in a manner that achievesfair presentation.

Materiality is the magnitude of misstatements in the Standalone financial statementsthat individually or in aggregate makes it probably that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative f Actors in 0) planning the scope of our auditwork and in evaluating the results of our work and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with the mall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the Standalone financial statementsof the current period and are the re fore the key audit matters. We describe the sematters in our auditor's report unless law or regulation precludes public disclosure aboutthe matter or when in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.

Report on other Legal and Regulatory Requirements

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

2) As required by section 143(5) we have included in the Annexure-B a statement onthe matters specified in the 'Directions' and in our opinion no Action is required to betaken the reon and the re is no imp Act on the accounts and financial statements of thecompany.

3) As required by Section143(3) of the Act we report that

a) We have obtained all the information and explanations which to the best ofourknowledge 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 financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the Directors as on 31stMarch 2020 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2020 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 be included in the Auditors' 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 imp Act of pending litigations on its financialposition in its financial statements vide Note No.24(i & I) to the financialstatements.

ii) the Company has made provision as required under the applicable law or accountingStandards for material foreseeable losses if any on long-term contracts includingderivative contracts — Refer Note No.24(a) to the financial statements .

iii) the re are no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company subject to Note. No. 24(k) to the financialstatements.

for M.R. Narain & Co.

Chartered Accountants Firm Regn. No.002330S

(M. Prabakar)

Partner

Place: Chennai Membership No.201987

Date : 11/06/2020 UDIN: 20201987AAAACJ7824

ANNEXURE 'A' TO the INDEPENDENTAUDITOR'S REPORT DATED 11/06/2020

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the financial statements for the year

ended 31st March 2020.

We report that:-

i) the Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets. the se fixed assets have beenphysically verified by the management at reasonable intervals and no materialdiscrepancies were noticed on such verification. the re is no immovable property held inthe name of company.

ii) the company is a service company primarily rendering financial services. Thusparagraph 3(ii) of the Order on 'Inventory' is not applicable to the Company.

iii) the Company has not granted any loan to Companies Firms or Limited LiabilityPartnership or other parties covered in Register maintained under Sec.189 of the CompaniesAct.

iv) the re is no loans investments guarantees and security attracting provisions ofsection 185 and 186 of the Companies Act 2013.

v) the company has now stopped accepting deposits from the public. It has repaid allthe deposits accepted in compliance with the provisions of the Companies Act 1956 and therules framed and directions issued by the National Housing Bank (NHB) except Rs.6.33Lakhs. This amount represents the deposit matured but withheld as Central Bureau ofInvestigation AntiCorruption Branch Shastri Bhavan Chennai has given direction not torelease till the disposal of the pending cases.

vi) the Central Government has not prescribed the maintenance of any cost records underSec.148(1) of the Companies Act 2013 for any of the services rendered by the Company.

vii) a) According the information and explanation given to us and on the basis of ourexamination of the records of the Company the re were no dues towards undisputedstatutory dues including provident fund employees' state insurance income-tax salestax service tax duty of customs duty of excise value added tax cess and any otherstatutory dues to the appropriate authorities and if not the extent of the arrears ofoutstanding statutory dues as on the last day of the financial year concerned for a periodof more than six months from the date the y became payable.

b)According to information and explanation given to us the re are no material dues ofduty of customs which have not been deposited with the appropriate authorities on accountof any dispute. However according to information and explanations given to us thefollowing dues of income-tax have not been deposited by the company on account ofdispute:-

• Income-Tax ofRs.432 Lakhs for the Assessment Year: 1999-2000 which is pendingbefore Madras High Court.

viii) the Term Loans from Indian Bank including interest accumulated there onoutstanding as on 31/03/2017 is converted into Funded Interest Term Loan (FITL) with NILinterest from 01/04/2017 and the n to convert FITL into Compulsorily

Convertible Preference Shares (CCPS) vide FILT agreement executed on 20/01/2018.However the subject matter of conversion of CCPS is pending.

ix) the company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Accordinglyparagraph3(ix) of the Orderisnot applicable.

x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

xi) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not paid managerialremuneration and the refore compliance in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Act does not arise.

xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph3(xii) of the Order is notapplicable.

xiii) According to the information and explanations given to us and based on ourexamination' of the records of the Company trans Actions with related parties are incompliance with sections 177 and 188 ofthe Act where applicable and details of such transActions have been disclosed in the financial statements as required by the applicableaccounting Standards.

xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private allotment of shares or fully or partly convertible debentures duringthe year.

xiii) According to the information and explanations given to us and based on ourexamination' of the records of the Company trans Actions with related parties are incompliance with sections 177 and 188 of the Act where applicable and details of such transActions have been disclosed in the financial statements as required by the applicableaccounting Standards.

xiv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private allotment of shares or fully or partly convertible debentures duringthe year.

for M.R. Narain & Co.

Chartered Accountants Firm Regn. No.002330S

(M. Prabakar)

Partner

Place: Chennai Membership No.201987

Date : 11/06/2020 UDIN: 20201987AAAACJ7824

ANNEXURE 'B' TO the INDEPENDENTAUDITOR'S REPORT DATED 11/06/2020

On the statement of the matters specified in the directions of Comptroller and AuditingGeneral of India.

1) According to the information and explanations given to us the re are no free holdand leaseholder 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 the company has made Bad debts written off debts of its loans/ interest amountingto Rs.35718334/-

3) As the Company is falling under financial service 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.

for M.R. Narain & Co.

Chartered Accountants Firm Regn. No.002330S

(M. Prabakar)

Partner

Place: Chennai Membership No.201987

Date : 11/06/2020 UDIN: 20201987AAAACJ7824

ANNEXURE 'C' TO the INDEPENDENT AUDITOR'S REPORT DATED 11/06/2020

Report on the Internal Financial Controls under Clause (I) of Sub-section 3 of Section143of the Companies Act 2013 ("the Act").

We have audited the internal financial controls over financial reporting of Ind BankHousing Limited ("the Company") as of31st March 2020 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for the Financial Statements

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'). the seresponsibilities 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 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 anunderstand ing of internal financial controls 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 judgement 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 controls systemover 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 trans Actions anddispositions of the assets of the company; (2) provide reasonable assurance that transActions 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 directions 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 control over financial reporting may become inadequate becauseof changes in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Opinion

According to the information and explanations given to us the Company has notestablished its internal financial control over financial reporting on criteria based onor considering 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.

Moreover it is informed that the company is incurring expenses only for its day to dayoperations after obtaining approval from the Managing Director such as salary and otherstatutory expenses as it is engaged only in recovery of existing housing loans. Controlover its financial trans Actions are commensurate with its level of operations.

In our opinion the fundamental requirement of effective internal control is a processeffected by people that supports the organization in several ways enabling it to providereasonable assurance regarding risk and to assist in the achievement of objectives. thecompany being smaller less complex and have less formal documentation regarding theoperation of its controls. However we applied testing controls through inquiry combinedwith other procedures such as observation of Activities inspection of less formaldocumentation or performance of certain controls to provide sufficient evidence aboutwhether the control is effective.

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 systemsover financial reporting.

We have considered the disclaimer reported above in determining the nature timing andextent of audit tests applied in our audit of the Standalone financial statements of thecompany and the disclaimer. does not affect our opinion on the Standalone financialstatements of the Company.

In our opinion the Company has in all material respects an adequate internalfinancial control system over financial reporting and such internal financial controlsover financial reporting were operating effectively asat31st March 2020.

for M.R. Narain & Co.
Chartered Accountants
Firm Regn. No.002330S
(M. Prabakar)
Partner
Place: Chennai Membership No.201987
Date : 11/06/2020 UDIN: 20201987AAAACJ7824

ANNEXURE - B TO the INDEPENDENTAUDITOR'S REPORT DATED 11/06/2020

On the statement of the matters specified in the directions of Comptroller and AuditingGeneral of India.

Sl. No.
1) Whether the company has system in place to process all the accounting trans Actions through IT system? If yes the implications of processing of accounting trans Actions outside IT system on the integrity of the accounts along with the financials implications if any may be stated No According to the information and explanations given to us Tally software through which the accounting trans Actions processed
2) Whether the re is any restructuring of an existing loan or cases of waiver/write off of debt/ loans /interest etc. made by a lender to the company due to the company's inability to repay the loan? If yes the financial imp Act maybe stated. Yes
The Term Loans from Indian Bank including interest accumulated the reon outstand ing as on 31/03/2017 is converted into Funded Interest Term Loan (FITL) with NIL interest from 01/04/2017 and the n to convert FITL into Compulsorily Convertible Preference Shares (CCPS) vide FILT agreement executed on 20/01/2018. However the subject matter of conversion of CCPS is pending.
3) Whether fund received / receivable for specific scheme from Central / State agencies were properly accounted for utilized as per its term and conditions? List the case ofdeviation. No
According to the information and explanations given to us no funds have been received/ receivable for specific scheme from Central / State agencies.

 

for M.R. Narain & Co.
Chartered Accountants
Firm Regn. No.002330S
(M. Prabakar)
Partner
Place: Chennai Membership No.201987
Date : 11/06/2020 UDIN: 20201987AAAACJ7824

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