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நிறுவன பெயரின் முதல் சில எழுத்துக்களை நிரப்பி 'கோ' பட்டனை கிளிக் செய்யவும்

Housing and Urban Development Corporation Ltd. இன் முடிவுகள்

Mar 31, 2023

HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the accompanying Standalone Financial Statements of Housing and Urban Development Corporation Limited (âthe Companyâ), which comprise the Balance Sheet as at 31^st March, 2023 and the Statement of Profit and Loss (including other Comprehensive Income), the statement of changes in equity and the Statement of Cash Flows for the year then ended, and notes to the Standalone financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe Standalone Financial Statementsâ).

2. 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 Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2023, and its profit including other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (âICAIâ) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter:

4. We draw attention to the following matter in the Notes to the Standalone financial statements:

The company has recognized interest income on âNo Lien AGP Accountâ amounting to Rs.28.51crore [Rs.28.02crore for the previous year ended 31^st March, 2022] for the year ended 31^st March 2023. The same has been shown in Note 28 (Other Income) under head âInterest on Construction Project''.

The balance outstanding as at the end of the year is Rs.558.97crore (debit) (Rs.526.27crore for the previous year ended 31^st March 2022) in âNo Lien AGP Accountâ. The company is in discussion with MoHUA for recovery/reimbursement of outstanding amount including interest as well as expenses being booked. [Refer Para 3 of Note 40]

Our opinion is not modified in respect of this matter.

Key Audit Matters

5. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our reports:

Sr.

No.

Key Audit Matter

Auditorâs Response

Ind AS 109 on Financial Instruments establishes a comprehensive framework for determining expected credit losses, accuracy of classification, recognition, de-recognition and measurement requirements for all the financial assets and liabilities. Considering the materiality of the amounts involved, possible effect from the pandemic Covid-19, the significant management judgment required in estimating the expected credit losses as well as measuring Financial Assets and Financial Liabilities and such estimates and

Principal Audit Procedures

Our procedures included, but were not limited to the following:

Our Audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:

	judgments being inherently subjective, this matter has	Obtained an understanding of the systems, processes
	been identified as a key audit matter for the current	and controls implemented by management for
	year audit.	recording and calculating Expected credit losses
	(Refer Notes : 6, 7, 8, 9, 10, 11, 15, 16, 17, 18, 19, 33,	(ECL), recognition, de-recognition and measurement of
	36, 37 and 40 to standalone financial statements)	Financial Assets and Financial Liabilities, for classifying financial assets portfolio into stages based on credit risk. â¢ Discussed with appropriate senior management and evaluated management''s underlying key assumptions in estimating the expected credit losses and measuring Financial Assets and Financial Liabilities. â¢ Selected the sample and tested the operating effectiveness of the internal control, relating to recognition, measurement and de-recognition of, financial assets and financial liabilities and calculation of ECL. We carried out a combination of procedures involving enquiry and observation, performance and inspection of evidence in respect of operation of these controls. â¢ Tested the relevant information technology systems access and change management controls relating to contracts and related information used in recording financial assets/ liabilities and calculation of ECL in accordance with the said Ind AS. â¢ Tested the appropriate staging of assets basis, their days past due and other loss indicators on sample basis.

Other Information

6. The Company''s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s Annual Report, but does not include the standalone financial statements and our auditor''s report thereon. The Annual report for the year ending 31^st March 2023 is expected to be made available to us after the date of this auditor''s report. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

7. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other Comprehensive income, Changes in Equity, and Cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian accounting Standards (Ind ASs) specified under Section 133 of the Act with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33, Regulation 52 and Regulation 54 of the Listing Regulations. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

8. In preparing the Standalone Financial Statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intend to liquidate the company or to cease operations, or has no realistic alternative but to do so.

9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditorâs Responsibilities for the Audit of the Standalone Financial Statements.

10. Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.

11. As Part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

â¢ Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of Internal control.

â¢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

â¢ Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

â¢ Evaluate the overall presentation, structure, and content of the Standalone Financial Statements, including the disclosures, and whether the standalone financial statements representing the underlying transactions and events in a manner that achieves fair presentation.

â¢ Perform procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations to the extent applicable.

â¢ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company and of its associate to express an opinion on the consolidated financial statements. For the other entities included in the Annual Consolidated Financial Results, which have been audited by the other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion-

12. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

13. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our Independence, and where applicable, related safeguards.

14. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our Auditor''s Report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

15. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ) issued by the Central Government of India

in terms of Sub section (11) of Section 143 of the Act, we give in the Annexure-âAâ, a statement on the matters specified in

Paragraph 3 and 4 of the said Order, to the extent applicable.

16. We are enclosing our report in terms of Section 143(5) of the Act, on the basis of such checks of the books and records of the

Company as we considered appropriate and according to the information and explanations given to us, in the Annexure âBâ,

on the directions issued by the Comptroller and Auditor General of India.

17. 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 accounts as required by law have been kept by the company so far as it appears from our examination of those books.

c) The Standalone Balance Sheet, the Statement of Profit and loss [including Other Comprehensive income], Statement of Changes in Equity and the Cash Flow Statement 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 Indian Accounting Standard (âInd-Asâ) specified under Section 133 of the Act;

e) The provisions of section 164(2) of the Companies Act, 2013 in respect of disqualifications of directors are not applicable to the Company being Government Company in terms of notification no. G.S.R. 463(E) dated 5^th June 2015 issued by the Ministry of Corporate affairs.

f) With respect of 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 âCâ; and

g) As per notification number G.S.R 463(E) dated June 5, 2015 issued by Ministry of Corporate Affairs, Section 197 of the Act regarding remuneration to Director is not applicable to the Company, since it is a Government Company; and

h) With respect to the other matters to be included in the Auditor''s Report in 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 financial position on its Standalone financial statements; (Refer Para 2(a) of Note no. 40 to standalone financial statements)

ii. The Company does not have any material foreseeable losses on long terms contracts including derivative contracts; (Refer Para 40(d) of Note no. 40 to standalone financial statements)

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; (Refer Para 17 of Note no. 40 to standalone financial statements)

iv. a) The management has represented that, to the best of its knowledge and belief, as disclosed in management

representations, no funds have been advanced or loaned invested (either from borrowed funds or securities premium or any other sources or kind of funds) by the Company to or in any persons or entities, including foreign entities (the intermediaries''), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (the Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries;

b) The management has represented that, to the best of its knowledge and belief, as disclosed in management representations, no funds have been received by the Company from any persons or entities, including foreign entities (the Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and

c) Based on such audit procedures performed as considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the management representations under Sub-clauses (a) and (b) above contain any material misstatement.

v. As stated in Note no. 40 (29) to the Standalone Financial Statements:

a) The final dividend proposed for the previous year, declared and paid by the company during the year is in compliance with section 123 of the companies Act,2013, as applicable.

b) The interim dividend declared and paid by the company during the year and until the date of this report is in compliance with section 123 of the companies Act, 2013.

c) . The Board of director of the company have proposed final dividend for the year which is subject to the approval

of the member at the ensuing Annual General Meeting. The amount of the dividend proposed is in accordance with section 123 of the companies Act, 2013, as applicable.

vi. Proviso to Rule 3(1) of the companies (Accounts) Rules, 2014 for maintaining books of accounts using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the company with effect from April 1,2023, and accordingly, reporting under Rule 11(g) of the companies (Audit and Auditors) Rule, 2014 is not applicable for the financial year ended March, 2023.

NHB/RBI Directions

18. The Company is complying with National Housing Bankâs (NHB)/Reserve Bank of Indiaâs (RBI) credit concentration norms in respect of loans to private sector agencies. However, in case of loans to State Governments/State Government Agencies/ Central Government Agencies, the said norms have been relaxed by the NHB/RBI vide various letters (Refer Para no.15 of Note No.40); the same is complied with except in case of Investment in equity shares of Housing Finance Company Indbank Housing Limited (Investee company) where investment in 25% of equity capital of investee company has been made instead of prescribed limit of 15%.

For A P R A & Associates LLP Chartered Accountants (Firm Registration No. 011078N / N500064)

Sd/-Arun Kumar Gupta Partner

Place : New Delhi

_u (Membership No.089657)

Date : 26^th May, 2023

UDIN: 23089657BGUFSE9913

Mar 31, 2022

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the Standalone Financial Statements of Housing and Urban Development Corporation Limited (âthe Companyâ), which comprise the Balance Sheet as at 31^st March, 2022 ,and the Statement of Profit and Loss (including Other Comprehensive Income), the statement of changes in equity and the Statement of Cash Flows for the year then ended, and notes to the Standalone financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as âthe Standalone Financial Statementsâ).

2. 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 Companies Act, 2013 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, (âInd ASâ) and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2022, and its profit including other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

Emphasis of Matter:

4. We draw attention to the following matter in the Notes to the Standalone financial statements:

i) The company has recognized interest income on âNo Lien AGP Accountâ amounting to Rs 28.02 crore [Rs.27.59 crore for the previous year ended 31^st March, 2021] for the year ended 31^st March 2022. The same has been shown in Note 28 (Other Income) under head âInterest on Construction Project''.

The balance outstanding as at the end of the year is Rs. 526.27crore (debit) in âNo Lien AGP Accountâ. The company is in discussion with MoHUA for recovery/reimbursement of outstanding amount including interest as well as booking of expenses. [Refer Para 3 of Note 40]

Our opinion is not modified in respect of this matter.

ii) We draw your attention to Para 8 of Note 40 to the Standalone financial results which explains the uncertainties and the management''s assessment of the financial impact due to the lock-downs and other restrictions and conditions related to the Covid-19 pandemic situation, for which a definitive assessment of the impact in the subsequent period is highly dependent upon circumstances as they evolve in the subsequent period.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Sr.

No.

Key Audit Matter

Auditorâs Response

Ind AS 109 on Financial Instruments establishes a comprehensive framework for determining expected credit losses, accuracy of classification, recognition, derecognition and measurement requirements for all the financial assets and liabilities. Considering the materiality of the amounts involved, possible effect from the pandemic Covid-19, the significant management judgment required in estimating the expected credit losses as well as measuring Financial Assets and Financial Liabilities and such estimates and judgments being inherently subjective, this matter has been identified as a key audit matter for the current year audit.

(Refer Notes : 6, 7, 8, 9, 10, 11, 12, 16, 17, 18, 19, 20, 33, 36, 37 and 40 to standalone financial statements)

Principal Audit Procedures

Our procedures included, but were not limited to the following:

Our Audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:

Obtained an understanding of the systems, processes and controls implemented by management for recording and calculating Expected credit losses (ECL), recognition, de- recognition and measurement of Financial Assets and Financial Liabilities, for classifying financial assets portfolio into stages based on credit risk.

â¢ Discussed with appropriate senior management and evaluated management''s underlying key assumptions in estimating the expected credit losses and measuring Financial Assets and Financial Liabilities.

â¢ Selected the sample and tested the operating effectiveness of the internal control, relating to recognition, measurement and de-recognition of, financial assets and financial liabilities and calculation of ECL. We carried out a combination of procedures involving enquiry and observation, performance and inspection of evidence in respect of operation of these controls.

â¢ Tested the relevant information technology systems access and change management controls relating to contracts and related information used in recording financial assets/ liabilities and calculation of ECL in accordance with the said Ind AS.

â¢ Tested the appropriate staging of assets basis, their days past due and other loss indicators on sample basis

Other Information

6. The Company''s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s Annual Report, but does not include the standalone financial statements and our auditor''s report thereon. The Annual report for the year ending 31^st March 2022 is expected to be made available to us after the date of this auditor''s report. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

7. The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other Comprehensive income, Changes in Equity, and Cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian accounting Standards (Ind ASs) specified 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditorâs Responsibilities for the Audit of the Standalone Financial Statements.

11. As Part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Report on Other Legal and Regulatory Requirements

15. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of Sub section (11) of Section 143 of the Act, we give in the Annexure- âAâ, a statement on the matters specified in Paragraph 3 and 4 of the said Order, to the extent applicable.

16. We are enclosing our report in terms of Section 143(5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the Annexure âBâ, on the directions issued by the Comptroller and Auditor General of India.

17. 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 accounts as required by law have been kept by the company so far as it appears from our examination of those books.

d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standard (âInd- Asâ) specified under Section 133 of the Act;

g) With respect to the other matters to be included in the Auditor''s Report in 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 financial position on its Standalone financial statements; (Refer Para 2(a)of Note no 40 to standalone financial statements)

ii. The Company does not have any material foreseeable losses on long terms contracts including derivative contracts; (Refer Para 38 of Note no 40 to standalone financial statements)

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protections Fund by the Company; (Refer Para 16 of Note no 40 to standalone financial statements)

NHB/RBI Directions

18. The Company is complying with National Housing Bankâs (NHB)/Reserve Bank of Indiaâs (RBI) credit concentration norms in respect of loans to private sector agencies. However, in case of loans to State Governments/State Governments Agencies/ Central Government Agencies, the said norms have been relaxed by the NHB/RBI vide various letters (Refer Para no.14 of Note No.40); the same is complied with except in case of Investment in equity shares of Housing Finance Company Indbank Housing Limited (Investee company) where investment in 25% of equity capital of investee company has been made instead of prescribed limit of 15%.

For A P R A & Associates LLP Chartered Accountants (Firm Registration No. 011078N / N500064)

Sd/-

Arun Kumar Gupta Partner

Place : New Delhi (Membership No.089657)

Date : 27- May 2022 ^UDIN: ^22089657AJT^BGV3316

Mar 31, 2021

TO THE MEMBERS OF HOUSING AND URBAN DEVELOPMENT CORPORATION LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

1. We have audited the Standalone Financial Statements of Housing and Urban Development Corporation Limited ("the Company"), which comprise the Balance Sheet as at 31^st March, 2021 and the Statement of Profit and Loss (including Other Comprehensive Income), the statement of changes in equity and the Statement of Cash Flows for the year then ended, and notes to the Standalone financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the Standalone Financial Statements").

2. 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 Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at 31^st March, 2021, and its profit including other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter

4. We draw attention to the following matter in the Notes to the Standalone financial statements:

i) The Company has recognised interest income on "No Lien AGP Account" amounting to Rs 27.59 crore [Rs. 27.20 crore for the previous year ended 31⁵¹ March, 2020] for the year ended 31^st March 2021. The same has been shown in Note 28 (Other Income) under head ''Interest on Construction Project''.

The balance outstanding as at the end of the year is Rs. 493.33 crore (debit) in "No Lien AGP Account". The Company is in discussion with MoHUA for recovery/reimbursement of outstanding amount including interest as well as booking of expenses. [Refer Para 3 of Note 40]

Our opinion is not modified in respect of this matter.

Key Audit Matters

Sr. No	Key Audit Matter	Auditorâs Response
1.	Ind AS 109 on Financial Instruments establishes a comprehensive framework for determining expected credit losses, accuracy of classification, recognition, derecognition and measurement requirements for all the financial assets and liabilities. Considering the materiality of the amounts involved, possible effect from the pandemic Covid-19, the significant management judgment required in estimating the expected credit losses as well as measuring Financial Assets and Financial Liabilities and such estimates and judgments being inherently subjective, this matter has been identified as a key audit matter for the current year audit.	Principal Audit Procedures Our procedures included, but were not limited to the following: Our Audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows: â¢ Obtained an understanding of the systems, processes and controls implemented by management for recording and calculating Expected credit losses (ECL), recognition, de-recognition and measurement of Financial Assets and Financial Liabilities, for classifying financial assets portfolio into stages based on credit risk. â¢ Discussed with appropriate senior management and evaluated management''s underlying key assumptions in estimating the expected credit losses and measuring Financial Assets and Financial Liabilities.
	(Refer Notes No : 6, 7, 8, 9, 10, 11, 12, 16, 17, 18, 19, 20, 33, 36, 37 and 40 to standalone financial statements)	â¢	Selected the sample and tested the operating effectiveness of the internal control, relating to recognition, measurement and derecognition of, financial assets and financial liabilities and calculation of ECL. We carried out a combination of procedures involving enquiry and observation, performance and inspection of evidence in respect of operation of these controls.
		â¢	Tested the relevant information technology systems access and change management controls relating to contracts and related information used in recording financial assets/ liabilities and calculation of ECL in accordance with the said Ind AS.
		â¢	Tested the appropriate staging of assets basis, their days past due and other loss indicators on sample basis.

Other Information

6. The Company''s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s Annual Report, but does not include the standalone financial statements and our auditor''s report thereon. The Annual report for the year ending 31^st March 2021 is expected to be made available to us after the date of this auditor''s report. Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

7. The Company''s 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 including other Comprehensive income, Changes in Equity, and Cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian accounting Standards (Ind ASs) specified 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 of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments 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 standalone financial statements that give a true and fair view

and are free from material misstatement, whether due to fraud or error.

8. In preparing the Standalone Financial Statements, the Board of Directors is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

9. Those Board of Directors are also responsible for overseeing the Company''s financial reporting process.

Auditor''s Responsibilities for the Audit of the Standalone Financial Statements.

11. As Part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

â¢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to Standalone Financial Statements in place and the operating effectiveness of such controls.

â¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Report on Other Legal and Regulatory Requirements

15. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order") 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", a statement on the matters specified in Paragraph 3 and 4 of the said Order, to the extent applicable.

16. We are enclosing our report in terms of Section 143(5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the Annexure ''B'' on the directions issued by the Comptroller and Auditor General of India.

17. 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 accounts as required by law have been kept by the Company so far as it appears from our examination of those books.

d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standard ("Ind- As") specified under Section 133 of the Act;

g) 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 financial position on its Standalone financial statements; (Refer Para 2(a)of Note no 40 to standalone financial statements)

ii. The Company does not have any material foreseeable losses on long terms contracts including derivative contracts; (Refer Para 34 of Note no 40 to standalone financial statements)

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protections Fund by the Company; (Refer Para 15 of Note no 40 to standalone financial statements)

NHB/RBI Directions

18. The Company is complying with National Housing Bank''s (NHB)/Reserve Bank of India''s (RBI) credit concentration norms in respect of loans to private sector agencies. However, in case of loans to State Governments/State Governments Agencies/Central Government Agencies, the said norms have been relaxed by the NHB/RBI vide various letters (Refer Para no.13 of Note No.40); the same is complied with except in case of Investment in equity shares of Housing Finance Company Indbank Housing Limited (Investee Company) where investment in 25% of equity capital of investee Company has been made instead of prescribed limit of 15%.

For Prem Gupta & Company Chartered Accountants (Firm Registration No. 000425N)

Sd/-Rajan Uppal Partner

Place of signature : New Delhi (Membership No. : 097379)

Date : 29^th June, 2021 UDIN: 21097379AAAACQ3928

Mar 31, 2018

Report on the Standalone Financial Statements

We have audited the accompanying Standalone Financial Statements of Housing and Urban Development Corporation Limited (âthe Companyâ), which comprise the Balance Sheet as at 31^st March, 2018, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as âstandalone financial statementsâ).

Managementâs Responsibility for the Standalone financial Statements

The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) 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 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 maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditorâs Responsibility for the Standalone Financial Statements

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.

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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone 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 Companyâs Directors, as well as evaluating the overall presentation of the standalone 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 financial statements.

Opinion

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 Company as at 31^st March, 2018, and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the Standalone financial statements:

i) The company has recognised interest income on âNo Lien AGP Accountâ amounting to Rs.26.24 crore [Rs.23.40 crore for the previous year ended 31^st March, 2017] for the year ended 31^st March, 2018. The same has been shown in Note 21 (Other Income) under head âInterest on Construction Project.

The balance outstanding as at the end of the year is Rs.398.12 crore (debit) in âNo Lien AGP Accountâ. The company is in discussion with MoHUA for recovery /reimbursement of outstanding amount as well as booking of expenses. [Refer Para 2 of Note 26]

ii) In case of one of the Borrower, the loan was categorized as sub-standard by the company on 15^th April, 2015. However, in view of Honâble High Court of Madras Order and legal opinion of law wing with respect to asset classification, the loan asset has been reclassified from sub-standard to standard. However, keeping in view the prudent accounting, the interest income of Rs.121.81 crore has not been recognized in the accounts and the company has earmarked provision of Rs.193.03 crore in the additional provision of Rs.284 crore as on 31^sl March, 2018 to meet such exigency.[Refer Para 6 of Note 26].

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure-âAâ, a Statement on the matters specified in the paragraphs 3 and 4 of the said Order.

2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the Annexure âBâ on the directions and sub-directions issued by the Comptroller and Auditor General of India.

3. 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 and proper returns adequate for the purposes of our audit have been received from the regional offices not visited by us;

c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement 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) We are informed that the provisions of Section 164(2) in respect of disqualification of directors of the Companies Act, 2013 are not applicable to the Company being Government Company in terms of notification no. G.S.R. 463 (E) dated 5^th June, 2015 issued by Ministry of Corporate Affairs;

f) 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 âAnnexure âCâ; and

g) With respect to the other matters to be included in the Auditorâs 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 its Standalone financial statements â [Refer Para 1 (a) of Note 26]

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts; [Refer Para 43 (d) of Note 26]

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; [Refer Para 25 of Note 26]

NHB DIRECTIVES

4. The company is complying with National Housing Bankâs (NHB) credit concentration norms in respect of loans to private sector agencies. However, in case of loans to State Governments / State Governments agencies, the said norms have been relaxed by NHB vide various letters (Refer table given in para no. 22 of Note no. 26); the same is complied with except in case of investment in equity shares of Housing Finance Company lndbank Housing Limited (investee company) where investment in 25 % of equity capital of investee company has been made instead of prescribed limit of 15%. [Refer para no. 22 of Note no. 26].

ANNEXURE âAâ TO THE INDEPENDENT AUDITORâS REPORT

(Annexure referred to in paragraph â1â under âReport on Other Legal and Regulatory Requirementsâ section of our report of even date to the members of Housing and Urban Development Corporation Limited on the Standalone Financial Statements for the year ended March 31^s1, 2018)

(i) In respect of fixed assets:

a. The Company has generally maintained proper records showing full particulars, including quantitative details and situation of fixed assets. However, we suggest that location of fixed assets should be updated regularly.

b. As per information and explanation given to us, there is a regular programme of physical verification of all fixed assets once every year which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In our opinion and as per the information given by the Management, the discrepancies observed were not material and have been appropriately accounted in the books.

c. The title/ lease deeds of the immovable properties are held in the name of the Company except in case of Leasehold Land/ flats / buildings measuring 11521.53 square meters having cost of Rs.33.99 crore and Freehold Land / flats / buildings measuring 5718.03 square meters having cost of Rs.6.51 crore, of which title / lease deeds are pending for execution in the name of the Company.

(ii) The nature of business of the company does not require it to have any inventory. Hence, the requirement of clause (ii) of paragraph 3 of the said Order, are not applicable to the company.

(iii) According to the information and explanation given to us, the company has not granted any loans, secured or unsecured to any companies, firms, limited liability partnerships or other parties covered in the register required to be maintained under section 189 of the Companies Act, 2013 (âthe Actâ). Hence Clause (iii) (a), (iii) (b) and (iii)(c) are not applicable.

(iv) According to the information and explanations given to us, the Company, being a Housing Finance Company, is exempted from the provisions of section 186 (2) as it is engaged in the business of providing financial assistance for housing and infrastructure facilities as provided under Schedule-VI of the Companies Act, 2013. However, we have been informed that the company has complied with provisions of section 186 (1) of the Companies Act, 2013. In our opinion and according to the information and explanations given to us, the Company has not advanced loans to directors / to a Company in which the Director is interested to which provisions of Section 185 of the Companies Act, 2013 apply.

(v) The company has accepted deposits from the public. In our opinion and according to the information and explanations given to us, the company, during the year, has complied with the 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 rules framed thereunder; and the provisions of Section 73 to 76 and other relevant provisions of the Companies Act, 2013, and the rules framed there under.

(vi) According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under sub section (1) of section 148 of the Companies Act, 2013, in respect of the business of the company.

(vii) (a) According to the information and explanations given to us and according to the records produced before us for verification, the company has generally been regular in depositing with appropriate authorities, the undisputed statutory dues including provident fund, income tax, wealth tax, service tax and any other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Sales/ Value added Tax, Service Tax and any other material statutory dues were in arrears as at 31^sl March 2018 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, the income tax, wealth tax and service tax dues which are pending on account of dispute are as under:

Name of Statute	Nature of Dues	Amount (in Rs. crore)	Period to which amount relates	Forum where dispute is pending
Income-tax Act 1961	Disputed Income-tax demand	74.53#	AY 2004-05,AY 2006-07, AY 2013-14 and AY 2015-16	CIT(A)
Income-tax Act 1961	Disputed Income-tax demand	84.46#	AY 1999-2000, AY 2007-08, AY 2010-11 to AY 2012-13 and AY 2014-15	ITAT
Income-tax Act 1961	Disputed Income-tax demand	29.72#	AY 1996-97 and AY 1998-99	High Court

Income-tax Act 1961	Disputed Income-tax demand	22.17#	AY 1997-98, AY 2002-03 and AY 2003-04	Addl. CIT
Income-tax Act 1961	Disputed Income-tax demand	26.03#	AY 2008-09 and AY 2009-10	Addl. CIT and CIT(A)
Income-tax Act 1961	Disputed Income-tax demand	38.32#	AY 2005-06	CIT (A) and ITAT
Income-tax Act 1961	Disputed Income-tax demand	49.73#	AY 2000-01 and AY 2001-02	Addl. CIT and ITAT
Wealth Tax Act, 1957	Disputed Wealth Tax	0.01@	AY 1995-96	Addl. CIT
Service tax- Finance Act, 1994	Disputed Service Tax demand	4.22*	FY 2005-06 to 2009-10	CESTAT
Service tax.- Finance Act, 1994	Disputed Service Tax demand	0.19*	FY 2008-09 to FY 201011 and FY 2012-13 to FY 2015-16	Commissioner-Service Tax
Service tax- Finance Act, 1994	Demand cum Show Cause under Service Tax	0.11*	FY 2008-09 to FY 2010-11 FY 2011-12 to 2014-15	Assistant/Deputy/ Joint Commissioner of Service Tax
TOTAL		329.49

# against disputed income tax demand, Rs.320.19 crores has been adjusted by authorities or paid by the Company under protest from time to time and remaining Rs.4.77 crores has not been paid.

@ Wealth tax amounting to Rs.0.01 crore paid under Protest by company.

* against disputed Service tax, Rs.0.14 crores has been paid by the company under protest and remaining Rs.4.38 crores has not been paid.

d) According to the information and explanations given to us, the amount which was required to be transferred to Investor Education and Protection Fund in accordance with sub section (5) of section 125 of the Companies Act, 2013 has been transferred. The unclaimed amount lying in current liabilities includes interest of Rs.0.37 crore as on March, 31^st 2018, which have lapsed 7 years from the respective due dates of interest payment and not transferred to IEPF, since 7 years from the maturity date of bonds/ deposits/ debentures has not been completed yet.(Refer Para 25 of Note 26)

(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions, banks, and Government or debenture holders.

(ix) According to the information and explanations given to us, the Company has raised the money through bonds issue, and term loan. The proceeds of such bonds issue, and term loan have been utilised for the purposes for which they were raised. Under the Disinvestment programme of Government of India, the President of India acting through the Ministry of Housing and Urban Poverty Alleviation (Selling Shareholder) sold 10.193% of its equity shareholding (i.e. 204,058,747 equity shares of face value of Rs.10/each) in Housing and Urban Development Corporation Ltd. (HUDCO) through an Initial Public Offer (IPO) at a price of Rs.60/- per equity share vide allotment dated 17.05.2017. As the offer comprised solely of the offer for sale by the selling shareholder and with HUDCO not raising any fresh equity capital through the offer, no proceeds of the offer have been received by HUDCO. The equity shares of HUDCO got listed on 19^th May, 2017.

(x) According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with Generally Accepted Auditing Practices in India, no case of frauds by the Company or on the company by its officers or employees has been noticed or reported during the year.

(xi) The provisions of Section 197 relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of MCA Notification no. G.S.R. 463 (E) dated 5^th June 2015.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and hence the requirement of Clause 3 (xii) of the order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us, transactions during the year with the related parties were approved by the Audit Committee and are in compliance with section 177 of the Companies Act, 2013 where applicable and since the said transactions were in the ordinary course of business of the company and were at.armâs length basis, the provisions of section 188 are not applicable, and the details have been disclosed in the Standalone Financial Statements, as required by the applicable accounting standards;

(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.

(xvi) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. However, the company being a Housing Finance Company, is registered with National Housing Bank vide Registration No. 01.0016.01 by which NHB has granted status of Housing Finance Company (HFC) to the Company on 31^st July, 2001.

For Prem Gupta & Company

Chartered Accountants

(firm Regn No. 000425N)

Sd/-

Place of Signature : New Delhi Prem behari Gupta

Date : 30^lh May, 2018 Partner

(Membership No.: 080245)

Mar 31, 2017

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Housing and Urban Development Corporation Limited (âthe Companyâ), which comprise the Balance Sheet as at 31^sl March, 2017, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âstandalone financial statementsâ).

Managementâs Responsibility for the Standalone Financial Statements

Auditorâs Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.

Opinion

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 Company as at 31^st March, 2017, and its profit and its cash flows for the year ended on that date.

Emphasis of Matters

We draw attention to the following matters in the Notes to the financial statements:

i) As indicated in Point 2(b) of Note no. 26, the company, as per the board resolution passed in the year 2009, has charged interest amounting to Rs.23.40 crore [Rs.23.12 crore for the previous year ended 31^st March, 2016] for the year ended 31^st March, 2017. The same has been shown under the head âOther Income - interest on construction projectâ.

The balance outstanding as at the end of the year is Rs.370.38 crore (debit) in âHUDCO AGP Accountâ. The same has been informed to the concerned ministry but specific confirmation from the ministry is awaited.

ii) In case of one of the Borrower, the loan was categorized as sub-standard by the company on 15.04.2015. However, in view of Honâble High Court of Madras Order and legal opinion of Law wing with respect to asset classification, the loan asset has been re-classified from sub-standard to standard. However, keeping in view the prudent accounting, the interest income of Rs.101.58 crore has not been recognized in the accounts-[Refer Point 7 of Note 26].

iii) In case of one of the borrower, the company has accounted for interest income of Rs.98.84 crore (including Rs.47.83 crore for the year (2015-16) in the statement of profit and loss for the period ended 31.03.2017- [Refer Point 8 of Note 26].

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure- 1, a statement on the matters specified in the paragraphs 3 and 4 of the said Order.

2. We are enclosing our report in terms of Section 143 (5) of the Act, on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, in the Annexure 2 on the directions and sub-directions issued by the Comptroller and Auditor General of India.

3. 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;

c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement 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) We are informed that the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the Company, being a Government Company in terms of notification no. G.S.R. 463(E) dated 5^th June 2015 issued by Ministry of Corporate Affairs.

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - [Refer Point 1(a) of Note 26];

ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

iv. The Company has provided requisite disclosures in its standalone financial statements as to holding as well as dealing in Specified Bank Notes during the period from 08^th November, 2016 to 30^th December, 2016 and these are in accordance with the books of accounts maintained by the Company.-[Refer Point 4 of Note 26].

NHB DIRECTIVES

4. The company is complying with National Housing Bankâs credit concentration norms in respect of loans to private sector agencies. However, in case of loans to State Governments / State Governments agencies, the said norms have been relaxed to HUDCO by NHB vide various letters (Refer table given in point no. 15 of Note no. 26); the same is complied with except in case of the investment in equity share of HFC i.e. Indbank Housing Limited where more than 15% of the equity capital of the investee company as prescribed limit, which was invested in the financial year 1990-91. [Refer Point no. 15 of Note no. 26].

ANNEXURE TO THE INDEPENDENT AUDITORâS REPORT

Annexure - Rs.1â referred to in our Independent Auditorâs Report to the members of the Housing and Urban Development Corporation Limited, on the standalone financial statements for the year ended 31^st March, 2017, we report that:

(i) (a) The company has maintained proper records showing full particulars of fixed assets including quantitative details.

(b) As per information and explanation given to us, there is a regular programme of physical verification of all fixed assets once every year which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In our opinion and as per the information given by the Management, the discrepancies observed were not material and have been appropriately accounted in the books.

(c) The title/ lease deeds of the immovable properties are held in the name of the Company except cases of Leasehold Land/flats/buildings measuring 11521.53 square meters having cost of Rs.33.99 crore and Freehold Land/flats/buildings measuring 5718.03 square meters having cost of Rs.6.51 crore, of which title/ lease deeds are pending for execution in the name of the Company.

(ii) The nature of business of the Company does not require it to have any inventory. Hence, the requirement of clause (ii) of paragraph 3 of the said Order, are not applicable to the Company.

(iii) According to the information and explanation given to us, the Company has not granted any loans, secured or unsecured to any companies, firm or other parties covered in the register required to be maintained under section 189 of the Companies Act, 2013 (âthe Actâ). Hence Clause (III) (a), (III) (b) and (III) (c) are not applicable.

(iv) According to the information and explanations given to us, the Company, being a Housing Finance Company, is exempted from the provisions of section 186 (2) as it is engaged in the business of providing financial assistance for housing and infrastructure facilities as provided under Schedule-VI of the Companies Act, 2013. However, we have been informed that the company has complied with the provisions of section 186 (1), where applicable. According to the information and explanations given to us, there were no transactions during the year to which the provisions of section 185 were applicable.

(v) The Company has accepted deposits from the public. In our opinion and according to the information and explanations given to us, the Company, during the year, has complied with the 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 rules framed thereunder; and the provisions of Section 73 to 76 and other relevant provisions of the Companies Act, 2013, and the rules framed there under.

(vii) (a) According to the information and explanations given to us and according to the records produced before us for verification, the company is generally regular in depositing with appropriate authorities, the undisputed statutory dues including provident fund, income tax, wealth tax, service tax and any other material statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Sales/ Value added Tax, Service Tax and any other material statutory dues were in arrears as at 31^st March 2017 for a period of more than six months from the date they became payable.

(c) According to the information and explanations given to us, there are no dues of income tax, Sales/Value added Tax and Service Tax which have not been deposited on account of any dispute except the following:

Name of the statue	Nature of Dues	Financial Year to which the matter pertains	Forum where Matter is Pending	Amount(Rs in Crores)

Income Tax	Income Tax,	1996-1997,	Adnl. Commissioner of Income	74.36
Act, 1961	Interest & Penalty	1999-2000, 2000-2001, 2003-2004, 2004-2005, 2005-2006, 2006-2007, 2007-2008, 2008-2009, 2013-2014	Tax, Commissioner of Income Tax (A) and ITAT

Finance Act,	Service Tax,	2005-2006,	Assistant/Deputy/Joint	4.62
1994	Interest & Penalty	2006-2007,	Commissioner/ Commissioner of
		2007-2008,	Service Tax /CESTAT
		2008-2009,
		2009-2010,
		2010-2011,
		2011-2012,
		2012-2013,
		2013-2014,
		2014-2015

d) According to the information and explanations given to us, the amount which was required to be transferred to Investor Education and Protection Fund in accordance with sub section (5) of section 124 of the Companies Act, 2013 except a sum of Rs.0.20 crore, which has not been deposited on account of unclaimed interest on bonds and deposits remaining unpaid for seven years from their date of payment.

(ix) According to the information and explanations given to us, the Company has raised the money against bonds through private placement offer. The proceeds of such bonds have been utilised for the purpose as mentioned in private placement offer letter.

(x) According to the information and explanations given to us and as represented by the Management and based on our examination of the books and records of the Company and in accordance with generally accepted auditing practices in India, no material case of frauds by the Company or on the Company by its officers or employees has been noticed or reported during the year.

(xi) As informed, the provisions of Section 197 relating to managerial remuneration are not applicable to the Company, being a Government Company, in terms of MCA Notification no. G.S.R. 463 (E) dated 5^th June 2015.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company and hence the requirement of Clause 3 (xii) of the order is not applicable.

(xiii) In our opinion and according to the information and explanations given to us, all transactions during the year with the related parties were approved by the Audit Committee and are in compliance with section 177 of the Companies Act, 2013 where applicable and since the said transactions were in the ordinary course of business of the company and were at armâs length basis, the provisions of section 188 are not applicable, and the details have been disclosed in the Financial Statements, as required by the applicable accounting standards;

(xiv) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. However, Under the Disinvestment programme of Government of India, the President of India acting through the Ministry of Housing and Urban Poverty Alleviation (Selling Shareholder) sold 10.193% of its equity shareholding (i.e. 204,058,747 equity shares of face value of Rs.10/- each) in Housing and Urban Development Corporation Ltd. (HUDCO) through an Initial Public Offer (IPO) at a price of Rs.60/- per equity share vide allotment dated 17.05.2017. As the offer comprised solely of the Offer For Sale by the selling shareholder and with HUDCO not raising any fresh equity capital through the offer, no proceeds of the offer have been received by HUDCO. The equity shares of HUDCO got listed on 19^th May, 2017.

(xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transactions with directors or persons connected with him.

According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. However, the company being a Housing Finance Company, is registered with National Housing Bank vide Registration No. 01.0016.01 by which nHb has granted status of Housing Finance Company (HFC) to HUDCO on 31^st July, 2001.

For Dhawan & Co.

Chartered Accountants

Firm Registration. No. 002864N

Sd/-

I.J. Dhawan

Place of Signature : New Delhi Partner

Date : 30^th May, 2017 Membership. No. - 081679

Mar 31, 2010

1. We have audited the attached Balance Sheet of Housing & Urban Development Corporation Limited, as at 31bt March, 2010, the Profit and Loss Account and also the Cash Row Statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these Glacial statements based on our - audit

2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plar and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on 3 test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor''s Report) Order, 2003 (as amended) issued by the Central Government of India in terms of s )b-section (4A) of Section 227 of it the Companies Act, 1956, we enclose in the Annexure, a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that:

i) The Company has during the year changed its accounting policy from deferring borrowing cost such as brokerage charges, arranger fees, stamp duty etc to treat these expenses as expenditure. /Is i result, the profit for the year is lower by Rs. 14.10 crores [refer Note 15 of Schedule-TJ.

ii) The Company has made an additional provision on loans amounting to Rs.600 Crores beyond National Housing Bank''s norms. As a result, the profit for the year is lower byRs.600 Crores [refer Note 5(b) of Schedule-T].

iii) The Company is accounting for application fees, front-end-fee, administrative fees and processing fees on loans on realization basis instead of accounting for on accrual basis, the effect of which has not bten ascertained {refer Signified Accounting Policy 2 (b) qf Schedule-S).

iv) Attention is further invited to the following: ;

a) Non confirmation/reconciliation of balances of Loan Accounts and consequential adjustments, if any. [refer No te 5(a) ofSchedule-Tj

b) Non-implementation of Default Resolution Package by Cochin International Airport Ltd [refer Note 5(c) of Schedule -T]

c) In respect of disputes relating to Andrews Ganj Project undertaken, by the Company on behalf of the Ministry of Urban Development, the ministry has intimated the Company that it cannot pass on the financial liability to the Government Account on account of various disputes. The Company on its part has refitted to accept any liability on account of disputes. We are

d) unable to comment upon the financial implication, if any. [refer Note 2(b) of Schedule-T]

d) The Company is not able to comply with National Housing Bank''s credit concentration norms in respect of lending to some State Governments / State Governments Agencies, [refer Note lb of Schedule-T}

5. We further report that:

a) We have 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, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement* with the books of account;

d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956, except Accounting Standard (AS) 9 "Revenue Recognition" regarding accounting of application fees, front-end-fees, administration '' fees and processing fees on loans on realisation basis instead of accrual basis, [refer Significant Accounting Policy 2 (b) of Schedule-S].

e) The requirements of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 relating to disqualification of directors are not applicable to the Company, being a Government Company, in terms of Notification No.G.S,R.829 (E) dated 21.10.2003 issued by Ministnjjf. Finance, Department of Company Affairs.

We further report that, without considering the observations made in paragraphs 4(iii) - the effect of which has not been ascertained and 4(iv)(a) to 4(iv)(d) the effect of which could not be determined, had the observation made by its in paragraph 4(i) & 4(ii) above been considered, the Profit for the year would have been Rs. 1109.41 Crores (as against the reported figure of Rs.495.31 Chores) and Reserves &. Surplus would have been Rs.3709.29 Crores (as against the reported figure of Rs.3095.19 Crores).

Subject to the foregoing, in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the Significant Accounting Policies and Notes to Accounts give the information required by the Companies Act, 1956, 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 31s1 March, 2010;

b) in the case of the Profit and Loss Account, 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.

ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE on THE ACCOUNTS of HOUSING & URBAN DEVELOPMENT CORPORATION LIMITED FOR THE YEAR ENDED 31st MARCH, 2010

i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.

(b) As per information and explanations given to us, all the fixed assets were physically verified by the Company during the year. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us, the Company has no disposed off a substantial part of its fixed assets during the year.

ii) The Company does not have any inventory. Therefore, the provisions of clause 4 (ii) (a), (b) & (c) of the Order, are not applicable.

iii) As informed to us, the Company has neither granted nor taken any loan, secured or unsecured, to/from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, provisions of clause 4(iii) (a) to (g) of the Order are not applicable.

iv) In our opinion and according to the information and explanations given to us, there are generally adequate internal control procedures commensurate with the size of the Company and nature of its business with regard to purchase of fixed assets. The Company''s operations do not involve purchase of inventory and sale of goods. In our opinion, monitoring mechanism in regional offices regarding loan schedule implementation, site inspection, reviewing of financial/ technical appraisal of the schemes and non-receipt of utilization certificates in respect of various grants and subsidies was inadequate and needs to be strengthened. v) According to the information and explanations given to us, we are of the , opinion that there are no transactions that need to be entered in the register required to be maintained under section 301 Of the Companies Act, 1956.

Vi) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 58A and 58AA and other relevant provisions of the Companies Act, 1956, the Companies (Acceptance of Deposits) Rules, 1975 and Housing Finance Companies (NHB) Directions with regard to deposits accepted from the public. No order has been passed by the Company Law Board or National Company Law "tribunal or Reserve Bank of India or NHB or any Court or any other Tribunal on the Company in respect oflhe aforesaid deposits.''

vii) According to the information and explanations given to us, the Company has an internal audit system; however, to make it commensurate with size and nature of its business, it requires to be further strengthened. In our opinion, coverage of Internal Audit should be enlarged and submission of report compliances needs to be expedited.

viii) According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under Section 209(1) (d) of the Companies Act, 1956.

ix) (a) According to the information and explanations given to us and according to the records produced before us for verification, the Company is generally regular in depositing, with appropriate authorities, the undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax and any other material statutory dues applicable to it,

Further, since the Central Government has till date not prescribed the amount t of cess payable under Section 441A of the Companies Act, 1956, we are not in a position to comment upon the regularity or otherwise of the Company in 1 depositing the same,

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of Income Tax, Wealth Tax, Service Tax and any other statutory dues were in arrears as at 31st March 2010 for a period of more than six months from the date the date they became payable.

(c) According to the information and explanations given to us, there are no dues of income tax, wealth tax and Service Tax which have not been deposited on account of any dispute except the following: __

Name of the Nature Financial Year Forum where Amount statue Of to which the Matter is Dues matter pertains pending (Rs. in Crores)

Income Tax Income 1996-1997, Deputy 32.43 Act, 1961 Tax, 1999-2000, Commissioner Interest & 2000-2001, of Income Tax Penalty 2001-2002, 2003-2004, 2007-2008

Finance Service 2004-2005, Commissioner 4.11 Act, 1994 Tax, 2005-2006, of Service Tax Interest & 2006-2007, Penalty 2007-2008, 2008-2009

x) The Company has no accumulated losses as at 31*1 March, 2010 and it has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year. :

xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders.

xii) We are of the opinion that the Company has maintained adequate documents and records where the Company has granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities

xiii) In our opinion, the Company is not a Chit Fund or Nidhi /Mutual Benefit Fund/Society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable.

xiv) In our opinion the Company is not dealing or trading in shares, securities, debentures or other investments. Therefore, the provisions of clause 4 (xiv) of the Order are not applicable. .= .

xv) The Company has not given any guarantees for loans taken by others from banks or financial institutions. Therefore, the provisions of clause 4(xv) of the Order are not applicable. .

xvi) According to the information and explanations given to us, the term loans have been applied for the purpose for which they were raised.

xvii) According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report thatj prima facie, no funds raised on short-term basis have been used for long- term investment.

xviii) According to the information and explanations given to us, the Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Companies Act, 1956. ,

xix) According to the information and explanations given to us, the Company has : not issued any debentures, during year. Therefore, the provisions of clause 4(xix) of the Order are not applicable.

xx) The Company has not raised any money through public issue during the year

xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no feud on or by the Company was noticed or reported during the year, although there have been few instances of loans becoming doubtful of recovery consequent upon fraudulent misrepresentation by borrowers, the amounts whereof are not material in the context of the size of the Company and the ''nature of its business and which have been provided for.

For Agiwal & Associates

Chartered Accountants

(Firm Registration No. 000181N)

VK Gupta

Partner

(Membership No. 81979)

Place : New Delhi

Dated: 11.06.2010

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