| We have audited the accompanying financial statements of International
Housing Finance Corporation Limited ('the Company') which comprise the
balance sheet as at 31 March 2015, the statement of profit and loss and
the cash flow statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in 133 of the Companies Act, 2013
("the Act") read with Rule 7 of the Companies (Accounts) Rule, 2014.
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken into account the provision
of the Act, the Auditing and auditing standards and matters which are
required to be included in the audit report under the provision of the
Act and Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
issued by the Institute of Chartered Accountants of India, as specified
u/s 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
I. in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2015;
II. in the case of the statement of profit and loss, of the profit for
the year ended on that date; and
III. in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order,2015 ("the
Order"), as amended, issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 3 and 4 of the
Order.
2. As required by section 143(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books;
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to
section 133 of the Act read with Rule 7 of the Companies (Accounts)
Rule 2014;
e. on the basis of written representations received from the directors
as on 31 March 2015, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2015, from being
appointed as a director in terms of section 164(2) of the Act;
f. with respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies(Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us;
I. The Company has disclosed the impact of pending litigations (if
any) on its financial position in its financial statements.
II. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses;
III. There were no amount which are required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of International
Housing Finance Corporation Limited ('the Company') for the year ended
31 March 2014. We report that:
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
2. The Company is a service company. Accordingly, it does not hold any
physical inventories. Thus, paragraph 2 of the Order is not applicable.
3. (a) The Company has granted unsecured loans to a company covered in
the register maintain under section 189 of the Companies Act, 2013. In
respect of loans granted, repayment of the principal amount and payment
of interest is as stipulated in the agreement.
(b) There is no overdue amount of loans granted to company listed in
the register maintained under section 189 of the Companies Act, 2013.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets and sale of services. The activities of
the Company do not involve purchase of inventory and the sale of goods.
We have not observed any major weakness in the internal control system
during the course of the audit.
5. The Company has not accepted any deposits from the public.
6. We have been informed by the management, no cost audit records has
been prescribed under section 148(1) of the Companies Act, 2013 in
respect of products of the Company.
7. (a) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, amounts
deducted/ accrued in the books of account in respect of undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income-tax, Sales-tax, Wealth tax, Service tax and
other material statutory dues have been regularly deposited during the
year by the Company with the appropriate authorities. As explained to
us, the Company did not have any dues on account of Employees' State
Insurance, Customs duty and Excise duty. According to the information
and explanations given to us, no undisputed amounts payable in respect
of Provident Fund, Investor Education and Protection Fund, Income-tax,
Sales-tax, Wealth tax, Service tax and other material statutory dues
were in arrears as at 31 March 2015 for a period of more than six months
from the date they became payable.
(b) According to the information and explanations given to us, there
are no material dues of Wealth tax and Cess which have not been
deposited with the appropriate authorities on account of any dispute.
However, according to information and explanations given to us, the
following dues of Income tax, Sales tax, and Service tax, have not been
deposited by the Company on account of disputes:
Sr. No. Nature of Undisputed Amount (in Rs.) Remarks
Statutory Due
1. Income Tax 14,84,918/- ITAT
2. Income Tax 16,52,244/- ITAT
3. Income Tax 2,10,565/- ITAT
8. The Company has accumulated losses of Rs. 80,97,369/- till the
immediately preceding Financial Year and earned a loss of Rs 5,71,729/-
during the Financial Year under this Report
9. The Company did not have any outstanding dues to any financial
institution, banks or debenture holders during the year.
10. According to the information and explanations given to us, the
Company has not given any guarantee
11. The Company did not have any term loans outstanding during the
year.
12. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no fraud on or by the company has been noticed or reported during
the year.
FOR NAIGAM H SHAH & CO.
Chartered Accountants
Firm's registration number: 125365W
Naigam H Shah
Proprietor
Membership number: 117236
Ahmedabad
25 May 2015
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