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Can Fin Homes | Auditor's Report > Finance - Housing > Auditor's Report from Can Fin Homes - BSE: 511196, NSE: CANFINHOME
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Can Fin Homes

BSE: 511196|NSE: CANFINHOME|ISIN: INE477A01012|SECTOR: Finance - Housing
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Mar 15
Auditor's Report (Can Fin Homes) Year End : Mar '16
We have audited the accompanying financial statements of Can Fin Homes
 Limited (the Company), which comprise the Balance Sheet as at March
 31, 2016 and the Statement of Profit and Loss for the year then ended,
 the Cash Flow Statement for the year then ended, and a summary of the
 significant accounting policies and other explanatory information [in
 which are incorporated the returns for the year ended on that date
 audited by the branch auditors of the Company''s 95 branches]
 
 Management''s Responsibility for the Financial Statements
 
 1) The Company''s Board of Directors is responsible for the matters in
 section 134(5) of the Companies Act, 2013 (the Act) with respect to
 the preparation of these financial statements that give a true and fair
 view of the financial position and financial performance of the Company
 in accordance with the accounting principles generally accepted in
 India, including the Accounting Standards specified under Section 133
 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
 This responsibility also includes the maintenance of adequate
 accounting records in accordance with the provision of the Act for
 safeguarding of the assets of the Company and for preventing and
 detecting the frauds and other irregularities; selection and
 application of appropriate accounting policies; making judgements and
 estimates that are reasonable and prudent; and design, implementation
 and maintenance of internal financial control, that were operating
 effectively for ensuring the accuracy and completeness of the
 accounting records, 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
 
 2) Our responsibility is to express an opinion on these financial
 statements based on our audit.
 
 We have taken into account the provisions of the Act, the accounting
 and auditing standards and matters which are required to be included in
 the audit report under the provisions of the Act and the Rules made
 there under.
 
 We conducted our audit in accordance with the Standards on Auditing
 specified under section 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 judgement, 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 financial control relevant to the Company''s
 preparation of the financial statements that give true and fair view 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 Company''s Directors, 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 on the financial
 statements.
 
 Opinion
 
 3) 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 case of the Balance Sheet, of the state of affairs of the
 Company as at March 31, 2016
 
 (ii) in case of the Statement of Profit and Loss, of the profit for the
 year ended on that date, and;
 
 (iii) in case of cash flow statement, the Cash Flows of the Company for
 the year ended on that date
 
 Other Matter
 
 4) We did not audit the financial statements of 95 branches included in
 the financial statements of the Company whose financial statements
 reflect total assets of Rs.5,789/- crores as at March 31, 2016 and total
 revenues of Rs.559/- crores for the year ended on that date, as
 considered in the financial statements. The financial statements of
 these branches have been audited by the branch auditors whose reports
 have been furnished to us, and our opinion in so far as it relates to
 the amounts and disclosures included in respect of these branches, is
 based solely on the report of such branch auditors.
 
 Our opinion is not modified in respect of this matter.  Report on Other
 Legal and Regulatory Requirements
 
 5) As required by the Companies (Auditor''s Report) Order, 2016 (the
 Order) issued by the Central Government of India in terms of
 subsection (11) of Section 143 of the Act, we give in the Annexure A
 a statement on the matters specified in paragraphs 3 and 4 of the
 Order.
 
 6) With respect to the adequacy of the internal financial controls over
 financial reporting of the Company and the operating effectiveness of
 such controls, refer to our separate Report in Annexure B .
 
 7) 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 best of our knowledge 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 the Company so far as it appears from our examination of
 those books.
 
 (c) The Balance Sheet and the Statement of Profit and Loss dealt with
 by this Report are in agreement with the books of account.
 
 (d) In our opinion, the aforesaid standalone financial statements
 comply with the Accounting Standards 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 March 31, 2016 taken on record by the Board of
 Directors, none of the directors is disqualified as on March 31, 2016
 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 on its
 financial position in Note 17 to the financial statements.
 
 ii. The Company did not have any long-term contracts including
 derivative contracts for which there were any material foreseeable
 losses.
 
 iii. The amounts which were required to be transferred to the Investor
 Education and Protection Fund by the Company have been transferred by
 the Company.
 
 (i) (a) The company is maintaining proper records showing full
 particulars, including quantitative details and situation of fixed
 assets;
 
 (b) According to the information and explanations given to us, the
 fixed assets of the company have been physically verified by the
 management during the year and no material discrepancies were found on
 such verification.
 
 (c) The title deeds of immovable property are held in the name of the
 Company.
 
 (ii) The company does not have inventory of goods, hence the provisions
 of Para 4(ii) of the Companies (Auditors Report), 2016 is not
 applicable to the Company.
 
 (iii) The company has not granted any loans secured or unsecured to
 Companies, firms or other parties covered in the register maintained
 under section 189 of the Companies Act, 2013.  Therefore the provisions
 of Para 4(iii) of the Companies (Auditors Report), 2016 are not
 applicable to the Company.
 
 (iv) According to the information and explanations given to us, the
 company does not have any loans, investments, guarantees, and security
 which are subject to provisions of section 185 and 186 of the Companies
 Act, 2013. Therefore the provisions of Para 4(iv) of the Companies
 (Auditors Report), 2016 are not applicable to the Company.
 
 (v) In our opinion and according to the information and explanations
 given to us, the company has complied with the provisions of Sections
 73 to 76 or any other relevant provisions of the Companies Act, 2013
 and the rules framed there under to the extent applicable and the
 Housing Finance Companies (NHB) directions, 2010 with regard to the
 deposits accepted from public.
 
 (vi) As explained to us, the Central Government has not prescribed
 maintenance of cost records under sub-section (1) of section 148 of the
 Companies Act, 2013 in the case of this company.
 
 (vii) (a) According to the information and explanations given to us and
 as per our verification of the records of the company, the company has
 been regular in depositing undisputed statutory dues including Income
 Tax, Cess and other statutory dues with the appropriate authorities
 during the year.
 
 (b) According to the information and explanations given to us and as
 per our verification of the records of the company, the following
 disputed amounts of tax/duty that have not been deposited with
 appropriate authorities as at March 31, 2016 are given below :
 
 Statute      Nature of
              dues         Amount (Rs.)  Period to 
                                         which      Forum to which
                                                    amount is pending
                                         the amount 
                                         relates
 
 Income Tax 
 Act, 1961    Income Tax   4,48,13,345   AY 2007-08 The Company has
                                                    filed an appeal
                                                    before the Hon''ble
                                                    High Court of
                                                    Karnataka which has
                                                    been admitted and 
                                                    yet to be heard
 
 Income Tax 
 Act, 1961    Dividend
              Distribution   16,43,798   AY 2011-12 The Company has
                                                    determined the 
                                                    probable 
              Tax u/s.115-O                         liability of 
                                                    Rs.1,97,812/- and 
                                                    made a request for
                                                    adjustment of the
                                                    said amount against 
                                                    the refund due.
                                                    Revised orders 
                                                    awaited from the 
                                                    Department.
 
 Total                     4,64,57,143
 
 (viii) According to the information and explanations given to us, the
 company has not defaulted in repayment of dues to banks, financial
 institutions and debenture holders.
 
 (ix) According to the information and explanations given to us, no
 fraud by the company and no fraud on the Company by its officers or
 employees has been noticed or reported during the year.
 
 (x) According to the information and explanations given to us, the
 managerial remuneration has been paid or provided in accordance with
 the requisite approvals mandated by the provisions of section 197 read
 with Schedule V to the Companies Act, 2013.
 
 (xi) The company is not a Nidhi Company and therefore the provisions of
 Para 4(xi) of the Companies (Auditors Report), 2016 is not applicable
 to the Company.
 
 (xii) The transactions with the related parties are in compliance with
 sections 177 and 188 of Companies Act, 2013 where applicable and the
 details have been disclosed in the Financial Statements etc., as
 required by the applicable accounting standards.
 
 (xiii) The company has not made any preferential allotment or private
 placement of shares or fully or partly convertible debentures during
 the year under review and therefore the provisions of Para 4(xiii) of
 the Companies (Auditors Report), 2016 is not applicable to the Company.
 
 (xiv) The company has not entered into any non-cash transactions with
 directors or persons connected with him, therefore the provisions of
 Para 4(xiv) of the Companies (Auditors Report), 2016 is not applicable
 to the Company.
 
 (xv) The company is not required to be registered under section 45-IA
 of the Reserve Bank of India Act, 1934.
 
                                         for K.P.Rao & Co.  
 
                                         Chartered Accountants
 
                                         Firm Reg. No. 003135S
 
 
 
                                         K. Viswanath
 
 Place : Bengaluru                       Partner
 
 Date :April 28, 2016                    Membership No. 022812
Source :
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