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Repco Home Finance Ltd.

BSE: 535322 Sector: Financials
NSE: REPCOHOME ISIN Code: INE612J01015
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OPEN 248.30
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VOLUME 37475
52-Week high 308.65
52-Week low 113.35
P/E 7.39
Mkt Cap.(Rs cr) 1,527
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 248.30
CLOSE 246.20
VOLUME 37475
52-Week high 308.65
52-Week low 113.35
P/E 7.39
Mkt Cap.(Rs cr) 1,527
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Repco Home Finance Ltd. (REPCOHOME) - Auditors Report

Company auditors report

To the Members of Repco Home Finance Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of Repco Home FinanceLimited ("the Company") which comprise the Balance sheet as at March 31 2022the Statement of Profit and Loss including the statement of Other Comprehensive Incomethe Cash Flow Statement and the Statement of Changes in Equity for the year then endedand notes to the standalone financial statements including a summary of significantaccounting policies and other explanatory information.

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 Companies Act 2013 as amended ("the Act") in the manner so required andgive a true and fair view in conformity with the Indian Accounting Standards prescribedunder section 133 of the Act read with the Companies (Indian Accounting Standards) Rule2015 as amended ("Ind AS") and other accounting principles generally acceptedin India of the state of affairs of the Company as at March 31 2022 its profitincluding other comprehensive income its cash flows and the changes in equity for the yearended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Standalone Financial Statements' section of ourreport. We are independent of the Company in accordance with the 'Code of Ethics' issuedby the Institute of Chartered Accountants of India together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of the Actand the Rules thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the Code of Ethics. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.

Emphasis of Matter

Note 8(a) to the Standalone Financial Statements which describes the economic andsocial consequences of the Covid-19 pandemic on the Company's financial metrics includingthe Company's estimates of impairment of loans to Customers which are dependent onuncertain future developments. Our conclusion on the Statement is not modified in respectof the above matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements for the financial yearended March 31 2022. These matters were addressed in the context of our audit of thestandalone financial statements as a whole and in forming our opinion thereon and we donot provide a separate opinion on these matters. For each matter below our description ofhow our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone financial statements section ofour report including in relation to these matters. Accordingly our audit included theperformance of procedures designed to respond to our assessment of the risks of materialmisstatement of the standalone financial statements. The results of our audit proceduresincluding the procedures performed to address the matters below provide the basis for ouraudit opinion on the accompanying standalone financial statements.

Key audit matters How our audit addressed the key audit matter
Impairment of financial assets at the balance sheet date (provision for expected credit losses on loans) Our audit procedures included but were not limited to the following:
Financial instruments which include advances to customers represents a significant portion of the total assets of the Company. The Company has advances aggregating Rs. 11763.43 crores as at March 31 2022. Read and assessed the Company's accounting policy for impairment of financial assets and its compliance with Ind AS 109 and the governance framework approved by the Board of Directors as well as relevant regulatory guidelines and pronouncements and tested the implementation of such policy on a sample basis.
Ind AS 109 requires the Company to provide for impairment of its financial assets (designated at amortised cost) as at the reporting date using the expected credit loss (ECL) approach. Tested the design and operating effectiveness of the controls for staging of loans based on their past-due status.
ECL involves an estimation of probability-weighted loss on financial instruments over their life considering reasonable and supportable information about past events current conditions and forecasts of future economic conditions which could impact the credit quality of the Company's financial assets (loan portfolio). Tested samples of performing (stage 1 & stage 2) loans to assess whether any SICR or loss indicators were present requiring them to be classified under higher stages as per Ind AS 109.
In the process a significant degree of judgement has been applied by the management for: Tested the assumptions used by the Company for grouping and staging of loan portfolio into various categories and default buckets for determining the probability of default (PD) and loss given default (LGD) rates. Tested the input data used for determining the PD and LGD rates and agreed the data with the underlying books of accounts and records.
• Staging of financial assets to Stage 1 2 or 3 (i.e. classification in 'significant increase in credit risk' ("SICR") and 'default' categories); For expected credit loss provision against outstanding exposure classified across various stages we obtained an understanding of the Company's ECL methodology (including factors that affect the probability of default loss given defaults and exposure at default; various forward looking micro-and macro-economic factors) the underlying assumptions and the sufficiency of the data used by management and tested the same on sample basis.
• Grouping of the loan portfolio under homogenous pools in order to determine probability of default on a collective basis; • We performed tests of controls and test of details on a sample basis in respect of the staging of outstanding exposure implementation of Company policy in response to Covid-19 and other relevant data used in impairment computation prepared by management as compared to the Company's policy.
• Determining effect of less frequent past events on future probability of default; • We enquired the management regarding significant judgments estimates involved in the impairment computation additional provision arising from the effects of the Covid-19 pandemic and evaluated the reasonableness thereof.
• Estimation of management overlay for macroeconomic factors which could impact the credit quality of the loans. • We tested the arithmetical accuracy of computation of ECL provision including the management overlay computed by the Company.
Given the unique nature of the Covid-19 pandemic the economic impact whereof would depend on future developments including governmental and regulatory measures and the Company's responses thereto the actual credit loss can be different than that being estimated as described in Note 8 to the financial statements significant social disruption and disturbance and slowdown of economic activity moratoriums granted to borrowers onetime restructuring and the related regulatory directives and also the applicable accounting directions further affect loan loss provisioning under the ECL approach. Due to the significance of the amounts involved judgments involved in classification of loans relative complexity of various assumptions and estimates used and determination of related provisions this audit area is considered a key audit matter. • Assessed disclosures included in the standalone financial statements in respect of expected credit losses including the specific disclosures made with regard to the impact of Covid-19 on ECL estimation.

Information Other than the Standalone Financial Statements and Auditors' Reportthereon:

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone financial statements and our auditor's report thereon. The Annual report isexpected to be made available to us after the date of this auditor's report.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether such other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

When we read the Other Information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance as required under SA 720 (Revised)

'The Auditor's responsibilities Relating to Other Information'.

Responsibilities of the management and those charged with governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financial statementsthat give a true and fair view of the financial position financial performance includingother comprehensive income cash flows and changes in equity of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment 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 involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness 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 financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) 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 themall 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 statementsfor the financial year ended March 31 2022 and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matters

The comparative financial information of the company for the year ended March 31 2021are based on the previously issued standalone financial statements prepared in accordancewith the IndAS that were audited by the predecessor auditor. The audit report dated June26 2021 on the audited standalone financial statement of the Company for the year endedMarch 31 2021 issued by predecessor auditor expressed an unmodified opinion.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2020 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 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 purposes of our audit;

b) In our opinion proper books of accounts 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 including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended:

e) On the basis of the written representations received from the directors as on March31 2022 taken on record by the Board of Directors none of the directors are disqualifiedas on March 31 2022 from being appointed as a director in terms of Section 164 (2) of theAct;

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 2". 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 the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 read with Schedule V to the Act.;

h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 39 to the standalonefinancial statements;

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 8.1 to the standalone financial statements.

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

iv. (a) The Management has represented that to the best of it's knowledge and beliefas disclosed in the notes to the accounts no funds (which are material eitherindividually or in the aggregate) have been advanced or loaned or invested (either fromborrowed funds or share premium or any other sources or kind of funds) by the Company toor in any other person(s) or entity(ies) including foreign entities("Intermediaries") with the understanding whether recorded in writing orotherwise that the Intermediary shall directly or indirectly lend or invest in otherpersons or entities identified in any manner whatsoever by or on behalf of the Company("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries. Refer note 50(e) to the standalone financialstatements.

(b) The Management has represented that to the best of it's knowledge and belief asdisclosed in the notes to accounts no funds (which are material either individually or inthe aggregate) have been received by the Company from any person(s) or entity(ies)including foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall directly or indirectly lend orinvest in other persons or entities identified in any manner whatsoever by or on behalf ofthe Funding Party ("Ultimate Beneficiaries") or provide any guarantee securityor the like on behalf of the Ultimate Beneficiaries. Refer note 50(e) to the standalonefinancial statements.

(c) Based on the audit procedures that has been considered reasonable and appropriatein the circumstances nothing has come to our notice that has caused us to believe thatthe representations under sub clause (a) and (b) above contain any material misstatement.

v. a) The Final Dividend proposed in the previous year declared and paid by thecompany during the year is in accordance with Section 123 of the Act.

b) The Board of Directors of the company proposed dividend for the year which issubject to the approval of the members at the ensuing Annual General Meeting. The Amountof Dividend proposed is in accordance with Section 123 of the Act as applicable.

For Chaturvedi & Co
Chartered Accountants
FRN 302137E
S. Ganesan FCA
Partner
Membership No. 217119
UDIN. 22217119AJLHXO2301
Place: Chennai
Date: 23-05-2022

Annexure 1 to the Independent Auditor's Report

Referred to in paragraph 1 on 'Report on Other Legal and Regulatory Requirements' ofour report of even date to the members of Repco Home Finance Limited ("theCompany") on the standalone financial statements as of and for the year ended March31 2022.

To the best of our information and according to the explanations provided to us by theCompany and books of accounts and records examined by us in the normal course of audit westate that:

i) In respect of the Company's Property Plant and Equipment and Intangible Assets:

a) A. The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipment and relevant detailsof right of use assets.

B. The Company has maintained proper records showing full particulars of intangibleassets.

b) The Company has a regular programme of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. Pursuant to the programme certain fixed assets were physicallyverified by the management during the year. In our opinion and according to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

c) Based on test check examination of the records and sale deeds /lease deeds/conveyance deeds/ property tax receipts and such other documents provided to us the titledeeds of all the immovable properties (other than properties where the Company is thelessee and the lease agreements are duly executed in favour of the lessee) are held in thename of the Company.

d) The Company has not revalued any of its Property Plant and Equipment (includingright of use of assets) and intangible assets during the year.

e) No proceeding has been initiated during the year or are pending against the Companyas on March 31 2022 for holding any benami property under the Benami Transactions(prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

ii) a) The Company's business does not require maintenance of inventories andaccordingly the requirement to report on clause 3(ii)(a) of the Order is not applicableto the Company.

b) According to the information and explanation given to us the Company has beensanctioned working capital limits in excess of Rs.5 Crore in aggregate during the yearfrom banks or financial institutions on the basis of security of current assets. In ouropinion and according to the information and explanations given to us the quarterlyreturns/statements filed by the company with such banks or financial institutions are inagreement with the unaudited books of account of the Company of the respective quartersand no material discrepancies have been observed.

iii) a) The Company is primarily engaged in the business of providing housing financeand loans against property to individual customers and hence reporting under Clause3(iii)(a) of the Order is not applicable.

b) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not given any loans or provided any guaranteeor security hence reporting on the terms and conditions of the grant of loans and advancesin the nature of loans and giving guarantee and providing security does not arise.Further the investments made during the year are in our opinion prima facie notprejudicial to the Company's interest.

c) In respect of loans and advances in the nature of loans granted by the Company aspart of its business of providing housing finance and loans against property to individualcustomer the schedule of repayment of principal and payment of interest has beenstipulated by the Company. Having regard to the voluminous nature of loan transactions itis not practicable to furnish customer-wise details of amount due date for repayment orreceipt and the extent of delay in this report (as suggested in the Guidance Note on CARO2020 issued by the Institute of Chartered Accountants of India for reporting under thisclause) in respect of loans and advances which were not repaid/paid when they were due orwere repaid/paid with a delay in the normal course of lending business. Further exceptfor loans where there are delays or defaults in repayment of principal and/or payment ofinterest as at the balance sheet date in respect of which the Company has disclosed assetclassification/staging in note 8.1 to the standalone financial statements in accordancewith Indian Accounting Standards (Ind AS) and the guidelines issued by the Reserve Bank ofIndia the parties are repaying the principal amounts as stipulated and are also regularin payment of interest as applicable.

d) The Company has not granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying any terms or period of repayment during theyear hence reporting under clause 3(iii) (d) is not applicable.

e) The Company is engaged in the business of Home Financing and hence reporting underClause 3(iii)(e) is not applicable.

f) According to information and explanations given to us and based on the auditprocedures performed The Company has not granted any loans or advances in the nature ofloans either repayable on demand or without specifying any terms or period of repaymentduring the year hence reporting under clause 3(iii)(f) is not applicable.

iv) According to the information and explanations given to us and on the basis of ourexamination of the records the Company has not given any loans or provided any guaranteeor security as specified under Section 185 of the Companies Act 2013 and the Company hasnot provided any guarantee or security as specified under Section 186 of the CompaniesAct 2013. Further the Company has complied with the provisions of Section 186 of theCompanies Act 2013 in relation to investments made.

v) According to the information and explanations given to us the Company has notaccepted any deposits or amounts which are deemed to be deposits during the year and noorder in this respect has been passed by the Company Law Board or National Company LawTribunal or the Reserve Bank of India or any Court or any other Tribunals in regard to theCompany. Hence reporting under clause 3(v) of the Order is not applicable.

vi) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under section 148(1) of the Act inrespect of the services rendered by the Company. Hence reporting under clause 3(vi) ofthe Order is not applicable.

vii) In respect of Statutory dues

a) According to the information and explanations given to us and the records of theCompany examined by us the Company has generally been regular in depositing undisputedstatutory dues including provident fund employees' state insurance income-tax duty ofcustoms duty of excise Goods and Services Tax (GST) cess and any other materialstatutory dues as applicable with the appropriate authorities. There were no undisputedamounts payable in respect of provident fund employees' state insurance income-tax dutyof customs duty of excise Goods and Services Tax (GST) cess and any other materialstatutory dues in arrears as at March 31 2022 for a period of more than six months fromthe date they became payable.

b) Details of statutory dues referred to in subclause (a) above which have not beendeposited as on March 31 2022 on account of disputes are given below:

Nature of the Statute Nature of dues Forum where the dispute is pending Period to which the amount relates Amount Rs. Crore
The Income Tax Act 1961 Income Tax NFAC Delhi. FY 2015-16 0.43

viii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not surrendered or disclosedany transactions previously unrecorded as income in the books of account in the taxassessments under the Income- tax Act 1961 as income during the year.

ix) a) Based on our audit procedures and as per the information and explanations givenby the management the Company has not defaulted in repayment of loans or borrowings tofinancial institutions banks Government The Company has not issued any debenture as atbalance sheet date.

b) The Company has not been declared as wilful defaulter by any bank or financialinstitution or government or any government authority.

c) Based on our audit procedures and as per the information and explanations given bythe management the term loan availed by the Company were used for the purpose for whichit was obtained other than temporary deployment pending application of funds.

d) On an overall examination of the financial statement of the Company funds raised onshort term basis have prima facie not been used during the year for long term purposes bythe Company.

e) On an overall examination of the financial statement of the Company the Company hasnot taken any funds from the entity or person on account of or to meet the obligations ofits associate. The Company did not have any subsidiary during the year.

f) The Company has not raised any loan during the year by pledge of securities held inits associate company and hence reporting on this clause 3(ix) (f) of the Order is notapplicable. The Company did not have any subsidiary or joint ventures during the year.

x) a) According to the information and explanations given to us the Company did notraise money by way of initial public offer or further public offer (including debtinstruments) during the year and hence reporting on this clause 3(x) (a) of the Order isnot applicable.

b) Based on our audit procedures and according to the information and explanationsgiven to us the Company has not made any preferential allotment of shares or convertibledebentures (fully or partly or optionally) during the year under review. Accordingly theprovisions of clause 3 (x) (b) of the Order are not applicable.

xi) a) To the best of our knowledge and belief and according to the information andexplanations given to us we report that no significant fraud by the Company or on theCompany by its officers or employees has been noticed or reported during the year nor havewe been informed of such case by the management.

b) No report under sub section (12) of section 143 of the Companies Act has been filedin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and upto the date of this report.

c) As represented to us by the management there are no whistle blower complaintsreceived by the Company during the year.

xii) The Company is not a Nidhi company in accordance with Nidhi Rules 2014.Accordingly the provisions of clause (xii) of the Order are not applicable

xiii) Based on our audit procedures and according to the information and explanationsgiven to us all the transactions entered into with the related parties during the yearare in compliance with Section 177 and Section 188 of the Act where applicable and thedetails have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

xiv) a) In our opinion the Company has adequate internal audit system commensuratewith the size and the nature of its business.

b) We have considered the internal audit reports for the year under audit issued tothe Company during the year and till date in determining the nature timing and extent ofour audit procedures.

xv) In our opinion during the year the Company has not entered into any non cashtransactions with its Directors or persons connected with its directors and henceprovisions of section 192 of the Companies Act 2013 are not applicable to the Company.

xvi) a) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

b) The Company is a Housing Finance Company registered with the National Housing Bankand is not required to obtain a Certificate of Registration (CoR) from the Reserve Bank ofIndia as per the Reserve Bank of India Act 1934.

c) The Company is a not a Core Investment Company as defined in the regulations made bythe Reserve Bank of India. Accordingly the provisions of clause 3 (xvi) (c) of the Orderare not applicable.

d) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016) and accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable.

xvii) The Company has not incurred cash losses during the financial year covered by ouraudit and the immediately preceding financial year.

xviii) The previous Statutory Auditor of the Company has resigned during the yearpursuant to the requirements of the RBI Guidelines for Appointment of Statutory CentralAuditors (SCAs)/ Statutory Auditors (SAs) of Commercial Banks (excluding RRBs) UCBs andNBFCs (including HFCs) vide Circular Ref. No. DoS. CO. ARG/ SEC.01/08.91.001/2021- 22dated April 27 2021. There were no pending objections or concerns raised by the outgoingauditors during the year.

xix) According to the information and explanation given to us On the basis of thefinancial ratios ageing and expected dates of realisation of financial assets and paymentof financial liabilities other information accompanying the financial statements and ourknowledge of the Board of Directors and Management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit reportindicating that Company is not capable of meeting its liabilities existing at the date ofbalance sheet as and when they fall due within a period of one year from the balance sheetdate. We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.

xx) a) According to the information and explanations given to us in respect of otherthan ongoing projects there are no unspent amounts that are required to be transferred toa fund specified in Schedule VII to the Companies Act (the Act) in compliance with secondproviso to sub-section 5 of Section 135 of the Act. This matter has been disclosed in noteno. 26 to the Standalone financial statements. Accordingly reporting under clause3(xx)(a) of the Order is not applicable for the year.

b) In respect of ongoing projects the Company has transferred unspent Corporate SocialResponsibility (CSR) amount as at the end of the previous financial year to a Specialaccount within a period of 30 days from the end of the said financial year in compliancewith the provision of section 135(6) of the Act.

xxi) On the basis of review of Companies (Auditor's Report) Order (CARO) reports of theAssociate Company included in the consolidated financial statement we report that thereare no qualifications or adverse remarks by the associate auditor in their CARO report ofthe Associate Company included in the consolidated financial statements.

For Chaturvedi & Co
Chartered Accountants
FRN 302137E
Sd/-
S. Ganesan FCA
Partner
Membership No. 217119
UDIN. 22217119AJLHXO2301
Place: Chennai
Date: 23-05-2022

Report on Internal Financial Controls Over Financial Reporting Annexure 2 toIndependent Auditor's Report

Referred to in paragraph 2(f) on 'Report on Other Legal and Regulatory Requirements' ofour report of even date to the members of Repco Home Finance Limited ("theCompany") on the standalone financial statements as of and for the year ended March31 2022.

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 Repco HomeFinance Limited ("the Company") as of March 31 2022 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' 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 issued by the ICAI. 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 were 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 maintained in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols with certain changes for remote work environment were operating effectively as atMarch 31 2022 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.

For Chaturvedi & Co
Chartered Accountants
FRN 302137E
Sd/-
S. Ganesan FCA
Partner
Membership No. 217119
UDIN. 22217U9AJLHXO2301
Place: Chennai
Date: 23-05-2022

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