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Updated:18 Nov, 2019, 15:40 PM IST

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Updated:18 Nov, 2019, 16:01 PM IST

Disclosure in auditor’s report explanatory

Independent Auditor's Report


To,

The  Members,

Reliance   Home Finance Limited

Report on the Financial Statements

We  have   audited    the   accompanying   financial  statements  of  Reliance  Home   Finance 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  the  Accounting  Standards  notified   under   the  Companies Act, 1956 ("the  Act")  read  with  General  circular  15/2013   dated  September 13, 2013 of the Ministry of Corporate  Affairs  in respect   of section  133 of the  Companies  Act,  2013. 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 Company'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 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:

(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,  Statement  of Profit  and  Loss and  Cash  Flow Statement   comply     with    the    Accounting    Standards    notified     under  the Companies  Act, 1956 read  with  General  Circular   15/2013  dated   September 13, 2013  of  the   Ministry    of  Corporate   Affairs   in  respect   of  section   133  of  the Companies  Act, 2013;

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 Act.

For Chaturvedi & Shah

Chartered Accountants

Firm's  Registration   No:101720W

Vijay  Napawaliya

Partner

Membership  No:  109859

Mumbai

Dated:   April 30, 2014

(i)             The  nature   of the  Company's  business/   activities during   the  year  have  been  such that,  clause   (ii), (viii)  &  (xiii) of Paragraph  4 of the  Companies  (Auditor's  Report) Order,  2003 are not  applicable to the Company for the year.

(ii)      In respect of its fixed  assets:  –

a.  The Company  has  maintained  proper  records,  showing full particulars  including quantitative  details  and  situation of its fixed assets.

b. The Company  has  a program  of physical  verification of its fixed  assets  by which all  fixed   assets   has  been  verified   during   the  year   and  no  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.

c.  In our  opinion,   and  according  to the  information  and  explanations  given  to us, the Company  has not  disposed off any fixed  assets  during   the year.

(iii)     In respect   of loans,  secured   or  unsecured,  granted   or  taken  by  the  Company  to/ from  companies,  firms  or  other   parties   covered   in  the  register   maintained  under section  301 of the Companies Act, 1956:

a) According  to the  information  and  explanations  given  to us,  during   the  year  the Company  has  not  granted   any  loan  secured/   unsecured  to party  covered   in the register   maintained  under   section  301 of the  Act.  But  the  Company  had  given secured   housing   loan  in the past  to a party,  prior  to his appointment  as director, whose    maximum   outstanding   balance    was   Rs.55,00,000 and   the   year   end balance  is Rs. Nil. There has been no disbursement post appointment.

b) In our  opinion,   the rate  of interest  and  other  terms  and  conditions on which  loan has  been  granted   to the  above  mentioned  party   are not,  prima   facie,  prejudicial to the interest   of the Company.

c) According  to the  information  and  explanations  given  to us,  the  said  loan  given in the  past  is partially   disbursed  and  pre–closed  during   the  year.  Till closure  of the  loan  interest  payment thereon  was  regular  as per  their  repayment  schedule.

d) There   is  no  overdue    amount    of  more   than   rupees   one  lakh   in  respect   of  the above  loans.

e) The  Company  has  not  taken  any  loans,  secured   or unsecured,  from  companies, firms  or other  parties  covered  in the register  maintained  under  section  301 of the Act. Accordingly, paragraphs  4(iii)(f) and  4(iii)(g) of the Order  are not  applicable to the Company.

(iv)                 In our  opinion   and  according to the information and  explanations  given  to us, there are   adequate   internal    control    procedures   commensurate   with   the   size   of  the Company  and  the nature   of its business with  regard  to purchase  of fixed  assets  and sale  of services. During   the  year  the  Company  did  not  undertake  any  activities of purchase  of inventories and  sale of goods.  During  the course  of our  audit,  we have not  observed  any  continuing  failure   to  correct   major  weaknesses  in  the  internal control  system.

(v)     According  to  information  and  explanations  given  to  us,  there  are  no  transactions that   needed    to  be  entered    in  the  register   maintained   under   Section   301  of  the Companies  Act,  1956. Accordingly,  the  question  of  commenting  on  transactions made  in pursuance  of such  contracts or arrangement  does not  arise.

(vi)     In our  opinion   and  according to the  information  and  explanations  given  to us, the Company  has  not  accepted any  deposit   from  the  public  hence  directives issued  by the   National   Housing   Bank   under    the   Housing   Finance    Companies   (NHB) Directions,   2010  with   regard    to   deposits    accepted   from   the   public    and   the provisions  of section  58A and  58AA  of the  Companies  Act, 1956 and  rules  framed there  under  are not applicable.

(vii)   In our  opinion,   the  Company  has  an internal   audit  system,  commensurate  with  its size and  nature   of its business.

(viii)   In respect of statutory dues:

a)  According  to  the  records   of  the  Company,  the  Company  has  generally  been regular   in  depositing  with  appropriate   authorities  undisputed   statutory  dues including  Investor   Education  Protection  Fund,   Income–tax,  Sales–tax, Wealth tax,  Service  Tax, Custom   Duty,  Excise  Duty  and  other  material   statutory  dues, as  applicable,  except  in  case  of Professional  Tax,  in  which   case  there   are  few delays    in   payment   of   the   said    due.    According   to   the   information   and explanations  given  to us, there  are no undisputed  amounts payable   outstanding as  at March  31, 2014 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 dues  of income  tax, sales  tax, wealth  tax, service  tax, custom   duty,  excise  duty  and  cess which  have  not  been  deposited  on account  of any  dispute.

(ix)     The  Company  neither   has  accumulated  losses  nor  it has  incurred   any  cash  losses during   the current   financial year  and  in the immediate preceding  financial year.

(x)      Based   on  our   audit   procedures   and  the  information  and   explanations  given   by management,   we   are   of  the   opinion    that   the   Company   has   not   defaulted   in repayment  of dues  to a financial institutions, banks  or debenture  holders.

(xi)     In our  opinion   and  according  to the  information  and  explanations  given  to us, the Company  has  maintained  the  adequate  documents  and  records   for  the  loans  and advances  granted   by  it on  the  basis  of security   by  way  of residential  houses   and properties.  The Company  has  not  granted   loans  and  advances by way  of pledge  of shares  and  debentures  during  the year.

(xii)    The   Company   has   maintained   proper    records    of  transactions   and   contract    in respect  of trading   in units  of mutual   fund  and  other  investments  and  timely  entries have  been  made  therein.  All the investments  have  been  held  by the Company in its own  name.

(xiii)   The  Company  has  not  given  any  guarantees  for  loans  taken  by  others  from  banks or financial institutions.

(xiv)   According to the  information  and  explanations  given  to us,  the  term  loans  availed by the Company,  were  prima  facie applied   by the Company  during   the year  for the purpose    for  which   loans  were   obtained  other   than   Rs.  3,200,000,000 which   as  at balance   sheet   date  were   temporary  deployed  in  units   of  mutual    funds,   pending utilization  and  was  subsequently  utilized   for  the  purpose   for which  loan  has  been taken.

(xv)    According to information  and  explanations  given  to us  and  on  the  basis  of review of  the  maturity  pattern    of  Assets   and   Liabilities and   management's   estimate   of expected preclosure  of the  loans  given  in next  one  year,  liabilities maturing  in next one year  are not  in excess  of the assets  of similar  maturity.

(xvi)   During   the  year,  the  Company  has  not  made   preferential  allotment  of  shares   to parties   and  companies covered   in the Register  maintained  under  Section  301 of the Companies  Act, 1956.

(xvii)                                                                                 The Company has created  securities in respect  of secured   debentures  issued  during the year.

(xviii) The Company has not raised any money by way  of public  issue  during  the year.

(xix)   During   the  course   of our  examination  of the  books  and  records   of the  Company, carried   out  in accordance  with  the  generally   accepted   auditing   practices   in  India, and   according  to  the  information  and  explanations  given  to  us,  we  have  neither come   across   any  instance   of  fraud   on  or  by  the  Company,  noticed   or  reported during   the year,  nor have  we been  informed   of such  case by the Management.

For Chaturvedi & Shah

Chartered Accountants

Firm's  Registration  No:101720W

Vijay  Napawaliya

Partner

Membership  No:  109859

Mumbai

Dated:   April  30,2014


Disclosure in auditors report relating to fixed assets

In respect of its fixed assets: – a. The Company has maintained proper records, showing full particulars including quantitative details and situation of its fixed assets. b. The Company has a program of physical verification of its fixed assets by which all fixed assets has been verified during the year and no 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. c. In our opinion, and according to the information and explanations given to us, the Company has not disposed off any fixed assets during the year.

Disclosure relating to quantitative details of fixed assets

The Company has maintained proper records, showing full particulars including quantitative details and situation of its fixed assets.

Disclosure relating to physical verification and material discrepancies of fixed assets

The Company has a program of physical verification of its fixed assets by which all fixed assets has been verified during the year and no 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.

Disclosure in auditors report relating to loans

In respect of loans, secured or unsecured, granted or taken by the Company to/ from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956: a) According to the information and explanations given to us, during the year the Company has not granted any loan secured/ unsecured to party covered in the register maintained under section 301 of the Act. But the Company had given secured housing loan in the past to a party, prior to his appointment as director, whose maximum outstanding balance was Rs.55,00,000 and the year end balance is Rs. Nil. There has been no disbursement post appointment. b) In our opinion, the rate of interest and other terms and conditions on which loan has been granted to the above mentioned party are not, prima facie, prejudicial to the interest of the Company. c) According to the information and explanations given to us, the said loan given in the past is partially disbursed and pre–closed during the year. Till closure of the loan interest payment thereon was regular as per their repayment schedule. d) There is no overdue amount of more than rupees one lakh in respect of the above loans. e) The Company has not taken any loans, secured or unsecured, from companies, firms or other parties covered in the register maintained under section 301 of the Act. Accordingly, paragraphs 4(iii)(f) and 4(iii)(g) of the Order are not applicable to the Company.

Disclosure about loans granted or taken by parties covered under section 301 of companies act

According to the information and explanations given to us, during the year the Company has not granted any loan secured/ unsecured to party covered in the register maintained under section 301 of the Act. But the Company had given secured housing loan in the past to a party, prior to his appointment as director, whose maximum outstanding balance was Rs.55,00,000 and the year end balance is Rs. Nil. There has been no disbursement post appointment.

Disclosure regarding terms and conditions of loans granted or taken

In our opinion, the rate of interest and other terms and conditions on which loan has been granted to the above mentioned party are not, prima facie, prejudicial to the interest of the Company.

Disclosure in auditors report relating to default in repayment of financial dues

In our opinion and according to the information and explanations given to us, the Company has maintained the adequate documents and records for the loans and advances granted by it on the basis of security by way of residential houses and properties. The Company has not granted loans and advances by way of pledge of shares and debentures during the year.

Disclosure in auditors report relating to adequacy of records maintained by share trading companies

The Company has maintained proper records of transactions and contract in respect of trading in units of mutual fund and other investments and timely entries have been made therein. All the investments have been held by the Company in its own name.

Disclosure in auditors report relating to securities created against debentures issued

The Company has created securities in respect of secured debentures issued during the year.

Disclosure in auditors report relating to any material fraud reported during period

During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.

Disclosure regarding terms of payment of loans granted or taken

According to the information and explanations given to us, the said loan given in the past is partially disbursed and pre–closed during the year. Till closure of the loan interest payment thereon was regular as per their repayment schedule.

Disclosure regarding terms of recovery of loans granted or taken

There is no overdue amount of more than rupees one lakh in respect of the above loans.

Disclosure in auditors report relating to internal control system

In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of fixed assets and sale of services. During the year the Company did not undertake any activities of purchase of inventories and sale of goods. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in the internal control system.

Disclosure in auditors report relating to companies internal audit system

In our opinion, the Company has an internal audit system, commensurate with its size and nature of its business.

Disclosure in auditors report relating to statutory dues

In respect of statutory dues: a) According to the records of the Company, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues including Investor Education Protection Fund, Income–tax, Sales–tax, Wealth tax, Service Tax, Custom Duty, Excise Duty and other material statutory dues, as applicable, except in case of Professional Tax, in which case there are few delays in payment of the said due. According to the information and explanations given to us, there are no undisputed amounts payable outstanding as at March 31, 2014 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 dues of income tax, sales tax, wealth tax, service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute.

Disclosure relating to regularity in payment of undisputed statutory dues

According to the records of the Company, the Company has generally been regular in depositing with appropriate authorities undisputed statutory dues including Investor Education Protection Fund, Income–tax, Sales–tax, Wealth tax, Service Tax, Custom Duty, Excise Duty and other material statutory dues, as applicable, except in case of Professional Tax, in which case there are few delays in payment of the said due. According to the information and explanations given to us, there are no undisputed amounts payable outstanding as at March 31, 2014 for a period of more than six months from the date they became payable.

Disclosure relating to fixed assets disposed off

In our opinion, and according to the information and explanations given to us, the Company has not disposed off any fixed assets during the year.

Disclosure in auditors report relating to contracts and arrangements under section 301 of companies act

According to information and explanations given to us, there are no transactions that needed to be entered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the question of commenting on transactions made in pursuance of such contracts or arrangement does not arise.

Disclosure in auditors report relating to deposits accepted from public

In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public hence directives issued by the National Housing Bank under the Housing Finance Companies (NHB)Directions, 2010 with regard to deposits accepted from the public and the provisions of section 58A and 58AA of the Companies Act, 1956 and rules framed there under are not applicable.

Disclosure relating to disputed statutory dues

According to the information and explanations given to us, there are no dues of income tax, sales tax, wealth tax, service tax, custom duty, excise duty and cess which have not been deposited on account of any dispute.

Disclosure in auditors report relating to accumulated losses

The Company neither has accumulated losses nor it has incurred any cash losses during the current financial year and in the immediate preceding financial year.

Disclosure in auditors report relating to loans and advances granted by way of pledge of shares debentures and other securities

In our opinion and according to the information and explanations given to us, the Company has maintained the adequate documents and records for the loans and advances granted by it on the basis of security by way of residential houses and properties. The Company has not granted loans and advances by way of pledge of shares and debentures during the year.

Disclosure in auditors report relating to guarantee given

The Company has not given any guarantees for loans taken by others from banks or financial institutions.

Disclosure in auditors report relating to preferential allotment of shares

During the year, the Company has not made preferential allotment of shares to parties and companies covered in the Register maintained under Section 301 of the Companies Act, 1956.

Disclosure in auditors report relating to purpose and end use of money raised through public issues

The Company has not raised any money by way of public issue during the year.

Disclosure in auditors report relating to term loans used for purpose other than for purpose they were raised

According to the information and explanations given to us, the term loans availed by the Company, were prima facie applied by the Company during the year for the purpose for which loans were obtained other than Rs. 3,200,000,000 which as at balance sheet date were temporary deployed in units of mutual funds, pending utilization and was subsequently utilized for the purpose for which loan has been taken.

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