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Indiabulls Housing Finance Ltd.

BSE: 535789 Sector: Financials
NSE: IBULHSGFIN ISIN Code: INE148I01020
BSE 00:00 | 13 Nov 841.15 -21.80
(-2.53%)
OPEN

860.00

HIGH

864.65

LOW

837.00

NSE 00:00 | 13 Nov 841.95 -23.30
(-2.69%)
OPEN

859.00

HIGH

864.95

LOW

838.15

OPEN 860.00
PREVIOUS CLOSE 862.95
VOLUME 300236
52-Week high 1439.40
52-Week low 640.15
P/E 9.12
Mkt Cap.(Rs cr) 35,892
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 860.00
CLOSE 862.95
VOLUME 300236
52-Week high 1439.40
52-Week low 640.15
P/E 9.12
Mkt Cap.(Rs cr) 35,892
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Indiabulls Housing Finance Ltd. (IBULHSGFIN) - Auditors Report

Company auditors report

TO THE MEMBERS OF INDIABULLS HOUSING FINANCE LIMITED

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements ofIndiabulls Housing Finance Limited (hereinafter referred to as "the HoldingCompany") its subsidiaries (the Holding Company and its subsidiaries togetherreferred to as "the Group") and its associate comprising of the consolidatedBalance Sheet as at March 31 2018 the consolidated Statement of Profit and Loss andconsolidated Cash Flow Statement for the year then ended and a summary of significantaccounting policies and other explanatory information (hereinafter referred to as"the consolidated financial statements").

Management's Responsibility for the Consolidated FinancialStatements

The Holding Company's Board of Directors is responsible for thepreparation of these consolidated financial statements in terms of the requirement of theCompanies Act 2013 ("the Act") that give a true and fair view of theconsolidated financial position consolidated financial performance and consolidated cashflows of the Group including its associate in accordance with accounting principlesgenerally accepted in India including the Companies (Accounting Standards) Rules 2006(as amended) specified under Section 133 of the Act read with the Companies (Accounts)Rules 2014. The respective Board of Directors of the companies included in the Group andof its associate are responsible for maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Group andof its associate and for preventing and detecting frauds and other irregularities; theselection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error which have been used for the purposeof preparation of the consolidated financial statements by the Directors of the HoldingCompany as aforesaid.

Auditor's Responsibility

Our responsibility is to express an opinion on these consolidatedfinancial statements based on our audit. While conducting the audit we have taken intoaccount the provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and theRules made thereunder. We conducted our audit in accordance with the Standards onAuditing issued by the Institute of Chartered Accountants of India as 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 aboutthe amounts and disclosures in the consolidated financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the consolidated financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Holding Company's preparation of the consolidated financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theHolding Company's Board of Directors as well as evaluating the overall presentationof the consolidated financial statements. We believe that the audit evidence obtained byus and the audit evidence obtained by the other auditors in terms of their reportsreferred to in paragraph (a) of the Other Matters paragraph below is sufficient andappropriate to provide a basis for our audit opinion on the consolidated financialstatements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us and based on the consideration of reports of other auditors onseparate financial statements and on the other financial information of the subsidiariesand associate the aforesaid consolidated financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the consolidated state ofaffairs of the Group and its associate as at March 31 2018 their consolidatedprofit/loss and their consolidated cash flows for the year ended on that date.

Other Matters

(a) The consolidated financial statements of the Company for the yearended March 31 2017 included in these consolidated financial statements have beenaudited by the predecessor auditor who expressed an unmodified opinion on those statementson April 24 2017.

(b) W e did not audit the financial statements and financialinformation in respect of 15 subsidiaries whose financial statements include totalassets of Rs 87586867007 as at March 31 2018 and total revenues of Rs 9284668079and net cash inflow of Rs 1492306576 for the year ended on that date. These financialstatement and other financial information have been audited by other auditors whichfinancial statements other financial information and auditor's reports have beenfurnished to us by the management. The consolidated financial statements also include theCompany's share of net profit of Rs 218704323 for the year ended March 31 2018 asconsidered in the consolidated financial statements in respect of one associate whosefinancial statements other financial information have been audited by other auditors andwhose reports have been furnished to us by the Management. Our opinion on the consolidatedfinancial statements in so far as it relates to the amounts and disclosures included inrespect of these subsidiaries and associate and our report in terms of sub-sections (3)of Section 143 of the Act in so far as it relates to the aforesaid subsidiaries andassociate is based solely on the reports of such other auditors.

One of these subsidiaries is located outside India whose financialstatements and other financial information have been prepared in accordance withaccounting principles generally accepted in their respective countries and which have beenaudited by other auditors under generally accepted auditing standards applicable in theirrespective countries. The Company's management has converted the financial statementsof such subsidiary located outside India from accounting principles generally accepted intheir respective countries to accounting principles generally accepted in India. We haveaudited these conversion adjustments made by the Company's management. Our opinion inso far as it relates to the balances and affairs of such subsidiary located outside Indiais based on the report of other auditors and the conversion adjustments prepared by themanagement of the Company and audited by us.

Our opinion above on the consolidated financial statements and ourreport on Other Legal and Regulatory Requirements below is not modified in respect of theabove matters with respect to our reliance on the work done and the reports of the otherauditors and the financial statements and other financial information certified by theManagement.

Report on Other Legal and Regulatory Requirements

As required by section 143 (3) of the Act based on our audit and onthe consideration of report of the other auditors on separate financial statements and theother financial information of subsidiaries and associate as noted in the ‘othermatter' paragraph we report to the extent applicable that: (a) W e / the otherauditors whose reports we have relied upon have sought and obtained all the informationand explanations which to the best of our knowledge and belief were necessary for thepurpose of our audit of the aforesaid consolidated financial statements; (b) In ouropinion proper books of account as required by law relating to preparation of theaforesaid consolidation of the financial statements have been kept so far as it appearsfrom our examination of those books and reports of the other auditors; (c) Theconsolidated Balance Sheet consolidated Statement of Profit and Loss and consolidatedCash Flow Statement dealt with by this Report are in agreement with the books of accountmaintained for the purpose of preparation of the consolidated financial statements; (d) Inour opinion the aforesaid consolidated financial statements comply with the Companies(Accounting Standards) Rules 2006 (as amended) specified under section 133 of the Actread with the Companies (Accounts) Rules 2014; (e) On the basis of the writtenrepresentations received from the directors of the Holding Company as on March 31 2018taken on record by the Board of Directors of the Holding Company and the reports of thestatutory auditors who are appointed under Section 139 of the Act of its subsidiariesincorporated in India none of the directors of the Group's companies incorporated inIndia is disqualified as on March 31 2018 from being appointed as a director in terms ofSection 164 (2) of the Act.

(f ) W ith respect to the adequacy and the operating effectiveness ofthe internal financial controls over financial reporting with reference to theseconsolidated financial statements of the Holding Company and its subsidiaries incorporatedin India refer to our separate report in "Annexure 1" to this report; (g) W ithrespect to the other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us: i. The consolidatedfinancial statements disclose the impact of pending litigations on its consolidatedfinancial position of the Group and its associate- Refer Note 31 (a) (b) and (d) to theconsolidated financial statements; i Provision has been made in the consolidatedfinanciali. statements as required under the applicable law or accounting standards formaterial foreseeable losses if any on long-term contracts including derivative contracts– Refer Note 28 (1) to the consolidated financial statements in respect of such itemsas it relates to the Group; i There has been no delay in transferring amountsii. requiredto be transferred to the Investor Education and Protection Fund by the Holding Companyand its subsidiaries incorporated in India during the year ended March 31 2018.

For S.R. Batliboi & CO. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Viren H. Mehta
Partner
Membership Number: 048749
Place of Signature: Mumbai
Date: April 20 2018

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THECONSOLIDATED FINANCIAL STATEMENTS OF INDIABULLS HOUSING FINANCE LIMITED

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

In conjunction with our audit of the consolidated financial statementsof Indiabulls Housing Finance Limited as of and for the year ended March 31 2018 we haveaudited the internal financial controls over financial reporting of Indiabulls HousingFinance Limited (hereinafter referred to as the "Holding Company") and itssubsidiaries which are companies incorporated in India as of that date.

Management's Responsibility for Internal Financial Controls

The respective Board of Directors of the Holding Company and itssubsidiaries which are companies incorporated in India are responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Holding Company considering the essential componentsof internal control stated in the Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting issued by the Institute of Chartered Accountants of India. 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 the respective company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the company'sinternal financial controls over financial reporting with reference to these consolidatedfinancial statements based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing both issued by Institute ofChartered Accountants of India and deemed to be prescribed under section 143(10) of theAct to the extent applicable to an audit of internal financial controls. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan andperform the audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting with reference to these consolidated financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting with reference tothese consolidated financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to theseconsolidated financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgementincluding the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. We believe that the audit evidence we haveobtained and the audit evidence obtained by the other auditors in terms of their reportsreferred to in the Other Matters paragraph below is sufficient and appropriate to providea basis for our audit opinion on the internal financial controls over financial reportingwith reference to these consolidated financial statements.

Meaning of Internal Financial Controls over Financial Reporting WithReference to these Consolidated Financial Statements

A company's internal financial control over financial reportingwith reference to these consolidated financial statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financialreporting with reference to these consolidated financial statements includes thosepolicies and procedures that (1) pertain to the maintenance of records that in reasonabledetail accurately and fairly reflect the transactions and dispositions of the assets ofthe company; (2) provide reasonable assurance that transactions are recorded as necessaryto permit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a materialeffect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting With Reference to these Consolidated Financial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these consolidated financial statements includingthe possibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these consolidated financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to theseconsolidated financial statements may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Holding Company and its subsidiaries which arecompanies incorporated in India have maintained in all material respects adequateinternal financial controls over financial reporting with reference to these consolidatedfinancial statements and such internal financial controls over financial reporting withreference to these consolidated financial statements were operating effectively as atMarch 31 2018 based on the internal control over financial reporting criteriaestablished by the Holding Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over Financial

Reporting issued by the Institute of Chartered Accountants of India.

Other Matters

Our report under Section 143(3)(i) of the Act on the adequacy andoperating effectiveness of the internal financial controls over financial reporting withreference to these consolidated financial statements of the Holding Company insofar as itrelates to its subsidiaries which are companies incorporated in India is based on thecorresponding reports of the auditors of such subsidiaries incorporated in India.

For S.R. Batliboi & CO. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
per Viren H. Mehta
Partner
Membership No. 048749
Mumbai April 20 2018