Independent Auditor
To the members of ICICI Home Finance Company Limited
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of ICICI Home Finance
Company Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and 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 accounting principles generally accepted in India, including
the Accounting Standards notified under the Companies Act, 1956 read with General Circular
8/2014 dated April 4, 2014, issued by the Ministry of Corporate Affairs. 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 conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. 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 but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. 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 Companies Act,
1956 ("the Act")in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March
31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for the year ended
on that date; and
(c) 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, 2003 ("the
Order") issued by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the Order.
2. As required by section 227(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, the Statement of Profit and Loss, and the Cash
Flow Statement comply with the Accounting Standards notified under the Companies Act, 1956
read with General Circular 8/2014 dated April 4, 2014, issued by the Ministry of
Corporate Affairs;
(e) On the basis of written representations received from the directors as on March 31,
2014, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2014, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
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For S.R. BATLIBOI & CO. LLP |
|
Chartered Accountants |
|
ICAI Firm Registration Number: 301003E |
|
per VIREN H. MEHTA |
| Place: Mumbai |
Partner |
| Date: April 21, 2014 |
Membership Number: 48749 |
Annexure to the auditor’s report
Annexure referred to in paragraph 1 under the heading "Report on Other Legal and
Regulatory Requirements" of our Report of even date
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the
year but there is a regular programme of verification which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets. As informed, no
material discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during the year.
(ii) The Company is a housing finance company and therefore, provisions of clause 4(ii)
of the Order related to inventory are not applicable.
(iii) According to the information and explanations provided by the management, the
Company has not granted or taken any loans, secured or unsecured to / from companies,
firms or other parties covered in the register maintained under section 301 of the Act.
Accordingly, the provisions of clause 4(iii)(a) to (g) of the Order are not applicable to
the Company and hence not commented upon.
(iv) 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, for purchase of fixed assets and for rendering of services.
The activities of the Company do not involve purchase of inventory and the sale of goods.
During the course of our audit, we have not observed any major weakness or continuing
failure to correct any major weakness in the internal control system of the Company in
respect of these areas.
(v) According to the information and explanations provided by the management, there are
no transactions that need to be entered in the register maintained under section 301 of
the Act.
(vi) In the opinion of the management of the Company, since the Company is a housing
finance company, section 58A and 58AA of the Act are not applicable to the Company. In
respect of deposits accepted from public, in our opinion and according to the information
and explanations given to us, provisions of The Housing Finance Companies (NHB)
Directions, 2010, have been complied with. We are informed by the management that no order
has been passed by the Company Law Board, National Company Law Tribunal or Reserve Bank of
India or any Court or any other Tribunal.
(vii) In our opinion, the Company has an internal audit system commensurate with the
size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central Government has not
prescribed maintenance of cost records under clause (d) of sub-section (1) of section 209
of the Act for the services provided by the Company.
(ix) (a) Undisputed statutory dues including provident fund, investor education and
protection fund, income-tax, sales tax, employees’ state insurance, wealth-tax,
service tax, cess and other material statutory dues have generally been regularly
deposited with the appropriate authorities though there have been delays in a few cases
pertaining to professional tax, value added tax, labour welfare fund, service tax and tax
deducted at source which are not serious in nature. As informed, provisions of custom
duty and excise duty are currently not applicable to the Company.
b) According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, investor education and protection fund,
employees’ state insurance, income-tax, wealth-tax, service tax, sales-tax, cess and
other material statutory dues were outstanding, at the year end, for a period of more than
six months from the date they became payable. As informed, provisions of, custom duty and
excise duty are currently not applicable to the Company.
(c) According to the records of the Company, amounts of income-tax and service tax dues
disputed by the Company, are as follows:
| Name of the statute |
Nature of dues |
Amount (Rs.) |
Period to which the amount relates |
Forum where dispute is pending |
| Income Tax Act, 1961 |
Income tax demands raised against the Company |
62,201,098 |
FY 2004-05 |
Assistant Commissioner of Income Tax, Mumbai |
| 34,458,417 |
FY 2006-07 |
Deputy Commissioner of Income Tax, Mumbai |
| 27,442,423 |
FY 2007-08 |
Additional/Deputy Commissioner of Income Tax, Mumbai |
| 76,150,948 |
FY 2008-09 |
Additional/Deputy Commissioner of Income Tax, Mumbai |
| 114,806,650 |
FY 2010-11 |
Additional/Deputy Commissioner of Income Tax, Mumbai |
| Finance Act 1994 |
Service tax demand raised against the Company |
715,590 |
FY 2006-07 to 2009 -10 |
Assistant Commissioner Service Tax (Audit), Division III, Mumbai |
(x) The Company has no accumulated losses at the end of the financial year and it has
not incurred cash losses in the current and immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and explanations given by
the management, we are of the opinion that the Company has not defaulted in repayment of
dues to financial institutions, banks or debenture holders.
(xii) According to the information and explanations given to us and based on the
documents and records produced to us, we are of the opinion that the Company has generally
maintained adequate records in cases where the Company has granted loans and advances on
the basis of security of fixed deposits.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable
to the Company.
(xiv) In respect of dealing/trading in shares, securities and other investments, in our
opinion and according to the information and explanations given to us, proper records have
been maintained of the transactions and contracts and timely entries have been made
therein. The shares, securities and other investments have been held by the Company, in
its own name.
(xv) According to the information and explanations given to us, the Company has not
given any guarantee for loans taken by others from banks or financial institutions.
(xvi) Based on information and explanations given to us by the management, term loans
were applied for the purpose for which the loans were obtained.
(xvii) According to the information and explanations given to us and on an overall
examination of the balance sheet of the Company, we report that no funds raised on
short-term basis have been used for long-term investment.
(xviii) The Company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under section 301 of the Act.
(xix) According to the information and explanations given to us, during the period
covered by our audit report, the Company has not issued any secured bonds.
(xx) The Company has not raised any money by public issues during the year.
(xxi) We have been informed that during the year under review few borrowers of the
Company have made fraudulent representations at the time of borrowing and consequently
such loans amounting to Rs. 7,169,871 have become doubtful of recovery and the same
have been fully provided for / written-off by the Company.
|
For S. R. BATLIBOI & CO. LLP |
|
ICAI Firm Registration No.: 301003E |
|
Chartered Accountants |
|
Per VIREN H. MEHTA |
| Place: Mumbai |
Partner |
| Date: April 21, 2014 |
Membership No.: 48749 |
+91-9892691696
