TO THE MEMBERS OF
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of HOUSING
DEVELOPMENT FINANCE CORPORATION LIMITED (the "Corporation"), which comprise
the Balance Sheet as at March 31, 2016, the Statement of Profit 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 auditor of the Corporations branch at Dubai.
Managements Responsibility for the Standalone Financial Statements
The Corporations Board of Directors is responsible for the matters stated in
Section 134(5) of the Companies Act, 2013 (the "Act") with respect to the
preparation of these standalone financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Corporation in accordance
with the accounting principles generally accepted in India, including the Accounting
Standards prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in
accordance with the provisions of the Act for safeguarding the assets of the Corporation
and for preventing and detecting 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 adequate internal
financial controls, 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.
Our responsibility is to express an opinion on these standalone 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 thereunder and the Order under Section 143 (11)
of the Act.
We conducted our audit of the standalone financial statements 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
An audit involves performing procedures to obtain audit evidence about the amounts and
the disclosures in the financial statements. The procedures selected depend on the
auditors 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
Corporations preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the circumstances. An audit
also includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Corporations 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 standalone financialstatements.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid standalone 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, of the state of affairs of the
Corporation as at March 31, 2016, and its profit and its cash flows for the year ended on
Emphasis of Matter
We refer to Note 3.2 to the financial statements, which describes the accounting
treatment used by the Corporation in creating the Deferred Tax Liability on Special
Reserve under Section 36(1)(viii) of the Income Tax Act, 1961 as at 1st April, 2014, which
is in accordance with the National Housing Banks Circular No. NHB (ND)/DRS/Pol.
Circular No. 65/2014 dated August 22, 2014.
Our opinion is not modified in respect of this matter.
We did not audit the financial statements of a branch included in the standalone
financial statements of the Corporation whose financial statements reflect total assets of
Rs. 0.60 crore as at March 31, 2016 (Previous Year Rs. 0.90 crore) and total revenues of
Rs. 2.07 crore for the year ended on that date (Previous Year Rs. 2.09 crore), as
considered in the standalone financial statements. The financialstatements of this branch
has been audited by the branch auditor whose report has been furnished to us, and our
opinion in so far as it relates to the amounts and disclosures included in respect of that
branch, is based solely on the report of such branch auditor. Our opinion is not modified
in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. 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
Corporation so far as it appears from our examination of those books and proper returns
adequate for the purposes of our audit have been received from Dubai branch not visited by
(c) The reports on the accounts of Dubai branch of the Corporation audited under
Section 143 (8) of the Act by branch auditors have been sent to us and have been properly
dealt with by us in preparing this report.
(d) The Balance Sheet, the Statement of Profit and Loss, and the Cash Statement dealt
with by this Report are in agreement with the books of account and with the returns
received from Dubai branch not visited by us.
(e) In our opinion, the aforesaid standalone financial statements comply with the
Accounting Standards prescribed under Section 133 of the Act.
(f) On the basis of the written representations received from the directors which were
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.
(g) With respect to the adequacy of the internal financial financial reporting of the
Corporation and the operating effectiveness of such controls, refer to our separate Report
in "Annexure A". Our report expresses an unmodified opinion on the adequacy and
operating effectiveness of the Corporations internal financial controls over
(h) With respect to the other matters to be included in the Auditors 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 Corporation has disclosed the impact of pending litigations on Flow its
financialposition in its financial statements;
ii. The Corporation has made provision, as required under the applicable law or
accounting standards, for material foreseeable losses on long-term contracts including
derivative contracts as at year end;
iii. There has been no delay in transferring amounts, required to be transferred, to
the Investor Education and Protection Fund by the Corporation.
2. As required by the Companies (Auditors Report) Order, 2016 (the
"Order") issued by the Central Government in terms of Section 143(11) of the
Act, we give in "Annexure B" a statement on the matters specified in controls
and 4 of the Order.
For DELOITTE HASKINS & SELLS LLP
(Firms Registration No. 117366W/W-100018)