We have audited the accompanying Standalone Financial
Statements of Sammaan Capital Limited (Formerly known as
'Indiabulls Housing Finance Limited') ("the Company"), which
comprise the Standalone Balance Sheet as at March 31, 2025
and the Standalone Statement of Profit and Loss (including other
comprehensive income), Standalone Statement of Cash Flows
and Standalone Statement of Changes in Equity for the year
then ended, and notes to the Standalone Financial Statements,
including a summary of material accounting policy information
and other explanatory information ("the Standalone Financial
Statements").
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, as amended ("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 and other accounting principles
generally accepted in India, of the standalone state of affairs
of the Company as at March 31, 2025, and its standalone profit
(including other comprehensive income), its standalone cash
flows and the standalone changes in equity for the year ended
on that date.
Basis for Opinion
We conducted our audit of the Standalone Financial Statements
in accordance with the Standards on Auditing (SAs), as
specified under Section 143(10) of the Act. 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 ("the ICAI")
together with the ethical requirements that are relevant to
our audit of the Standalone Financial Statements under the
provisions of the Act and the Rules thereunder, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements and the ICAl's Code of Ethics. 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.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
Standalone Financial Statements for the financial year ended
March 31, 2025. 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. For each matter below, our
description of how our audit addressed the matter is provided
in that context.
We have determined the matters described below to be the
key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor's
responsibilities for the audit of the Standalone Financial
Statements section of our report, including in relation to these
matters. Accordingly, our audit included the performance
of procedures designed to respond to our assessment of the
risks of material misstatement of the Standalone Financial
Statements. The results of our audit procedures, including the
procedures performed to address the matters below, provide
the basis for our audit opinion on the accompanying Standalone
Financial Statements.
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Key audit matters
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How our audit addressed the key audit matters
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Impairment of Loans
(As described in Note 8 of the Standalone Financial Statements)
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Loans (net of impairment provision) outstanding as on March
31, 2025 are Rs. 42,932.18 crores.
Ind AS 109 - Financial Instruments requires the Company
to provide for impairment of its financial assets using the
expected credit loss ('ECL') approach involving an estimation
of probability of loss on the financial assets over their life,
considering reasonable and supportable information about
past events, current conditions and forecasts of future
economic conditions which could impact the credit quality of
the Company's loans and advances. In the process, a significant
degree of judgement has been applied by the management in
respect of following matters:
• The Company has various loan products divided into
Corporate loan portfolio and Retail loan portfolio. Retail
loans are grouped into different categories on the basis
of homogeneity and thereby expected to demonstrate
similar credit characteristics. Corporate loan portfolio is
assessed on a case-to-case basis.
• Estimation of losses in respect of loans or groups of loans
which had no/ minimal defaults in the past.
• Staging of loans and estimation of behavioural life.
• Management overlay for macro-economic factors and
estimation of their impact on the credit quality.
• The Company has developed models that derive key
assumption used within the provision calculation such as
probability of default (PD).
• The company has used the loss given default (LGD) rates
based on past experience and industry practice.
• The output of these models is then applied to the
provision calculation with other information including the
exposure at default (EAD).
Given the complexity, significant judgement involved in the
estimation of impairment of financial instruments, we have
considered this area as a key audit matter.
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• Our audit procedures included considering the company's
accounting policies for impairment of loans and assessing
compliance with the policies in terms of Ind AS 109 and
with the governance framework approved by Board of
Directors pursuant to Reserve Bank of India guidelines
issued on March 13, 2020.
• We understood the process of ECL estimation and tested
the design and operating effectiveness of key controls
around data extraction and validation.
• Assessed the criteria and tested sample for staging of
loans based on their past-due status and to evaluate
compliance with requirement of Ind AS 109.
• Tested the ECL model, including assumptions and
underlying computation. Tested the input data used for
determining the probability of default and loss given
default rates and agreed the data with the underlying
books of account and records.
• Tested the arithmetical accuracy of computation of ECL
provision performed by the Company in spreadsheets.
• We assessed the disclosures included in the Standalone
Financial Statements in respect of ECL with the
requirements of Ind AS 109 and Ind AS 107 Financial
Instruments: Disclosures.
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Key audit matters
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How our audit addressed the key audit matters
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Investments in subsidiaries and debt instruments
(As described in Note 9 of the Standalone Financial Statements)
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Total investments as at March 31, 2025 amounting to Rs.
16,752.03 crores (net off impairment allowance of Rs. 208.39
crores) include investments in subsidiaries amounting to Rs.
3,757.53 (net off impairment allowance of Rs. 5.05 crores) and
debt instruments amounting to Rs. 8,797.45 crores (net off
impairment allowance of Rs. 129.35 crores).
The estimation of the recoverable amount and carrying
amount of such investments in subsidiaries and debt securities
is based on complex assumptions and management estimates.
The Company periodically assesses if there are any impairment
indicators for recognising impairment loss in respect of these
investments.
Considering that significant judgment is required and
the underlying complexity of the assumptions used and
management's estimates, this is considered as a key audit
matter.
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In view of the significance of the matter we applied the
following audit procedures in this area, to obtain sufficient and
appropriate audit evidence:
• Obtained an understanding of the Company's process
for accounting/recognition of investments and assessing
the indicators of impairment of investments, and for
the estimation of the recoverable value, as considered
necessary.
• We evaluated the design, implementation and operating
effectiveness of key internal controls over initial
recognition, valuation and impairment assessment of
such investments.
• Obtained the impairment analysis carried out by the
management and calculation of fair value of such
investments based on reports of external independent
valuation experts engaged by the Company.
• Noted that the valuation report has been obtained from
external registered valuation experts.
• Assessed the methodology used by the management
to estimate the fair value/ recoverable value of such
investments.
• Assessed appropriateness of the valuation methodology
used by the management and reasonableness of the
valuation assumptions and estimates used in the fair
valuation of investment in subsidiaries.
• Assessed the appropriateness of disclosures made in the
Standalone Financial Statements in accordance with the
requirements of Indian Accounting Standards and RBI
Guidelines, as applicable.
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IT systems and controls
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Key audit matters
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How our audit addressed the key audit matters
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The financial accounting and reporting systems of the
Company are fundamentally reliant on IT systems and IT
controls to process significant transaction volumes. Automated
accounting procedures and IT environment controls, which
include IT governance, general IT controls over program
development and changes, access to programs and data and
IT operations, are required to be designed and to operate
effectively to ensure appropriate financial reporting.
Therefore, due to the pervasive nature and complexity of the
IT environment, the assessment of the general IT controls
and the application controls specific to the accounting and
preparation of the financial information is considered to be a
key audit matter.
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Our audit procedures, with support from IT specialists include
the following:
• Tested the design and operating effectiveness of the
Company's IT access controls over the information
systems that are critical to financial reporting.
• Tested IT general controls (logical access, changes
management and aspects of IT operational controls).
This included testing requests for access to systems were
reviewed and authorized.
• Tested the Company's periodic review of access rights.
Also tested requests of changes to systems for approval
and authorization.
• In addition to the above, tested the design and operating
effectiveness of certain automated controls that were
considered as key internal controls over financial
reporting.
• Tested the design and operating effectiveness of
compensating controls in case deficiencies were
identified and where necessary, extended the scope of
our substantive audit procedures.
• Obtained appropriate audit evidence regarding the
reliability of system generated data and reports relevant
to our audit.
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Information Other than the Standalone Financial Statements
and Auditor's Report Thereon
The Company's Board of Directors is responsible for the other
information. The other information comprises the information
included in the Board's report and Annual Report, but does not
include the Standalone Financial Statements and our auditor's
report thereon. The Board's report and Annual Report are
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.
Management's Responsibility for the Standalone Financial
Statements
The Company's Board of Directors is responsible for the
matters stated in Section 134(5) of 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, cash
flows and changes in equity of the Company in accordance with
the accounting principles generally accepted in India, including
the Indian Accounting Standards specified under Section 133 of
the Act read with the Companies (Indian Accounting Standards)
Rules 2015, as amended. 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.
In preparing the Standalone Financial Statements, the
management 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 the management either intends
to liquidate the Company or to cease operations, or has no
realistic alternative but to do so.
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
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.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• 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.
• 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 Act, we are also responsible for expressing our
opinion on whether the Company has adequate internal
financial controls system with reference to Standalone
Financial Statements in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by the management.
• 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.
• Evaluate the overall presentation, structure and content
of the Standalone Financial Statements, including the
disclosures, and whether the Standalone Financial
Statements represent the underlying transactions and
events in a manner that achieves fair presentation.
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.
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.
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 financial year ended March 31, 2025 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.
Other Matter
The comparative financial information of the Company for the
year ended March 31, 2024, were audited by the predecessor
joint statutory auditors of the Company, who expressed an
unmodified opinion on those Standalone Financial Statements
dated May 24, 2024. Accordingly, we do not express any
opinion, as the case may be, on the figures reported in the
Standalone Financial Statements for the year ended March 31,
2024. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order,
2020 ("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 1" a statement on the matters
specified in paragraphs 3 and 4 of the Order, to the extent
applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of account as required
by law have been kept by the Company so far as it
appears from our examination of those books;
(c) The Standalone Balance Sheet, the Standalone
Statement of Profit and Loss (including Other
Comprehensive Income), the Standalone Statement
of Cash Flows and Standalone Statement of Changes
in Equity 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
Standards specified under Section 133 of the Act,
read with Companies (Indian Accounting Standards)
rules, 2025, as amended;
(e) On the basis of the written representations received
from the directors as on March 31, 2025 taken on
record by the Board of Directors, none of the directors
of the Company is disqualified as on March 31, 2025
from being appointed as a director in terms of Section
164 (2) of the Act.
(f) With respect to the adequacy of the internal financial
controls over financial reporting of the Company with
reference to these standalone financial statements
and the operating effectiveness of such controls, refer
to our separate Report in "Annexure 2".
(g) With respect to the other matters to be included in the
Auditor's Report in accordance with the requirements
of section 197(16) of the Act, as amended, in our
opinion and to the best of our information and
according to the explanations given to us, the
remuneration paid by the Company to its directors
during the year is in accordance with the provisions of
section 197 read with Schedule V of the Act.
(h) 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,
as amended 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 - (Refer Note
33 to the Standalone Financial Statements.)
ii. The Company has made provision, as required
under the applicable law or Indian Accounting
Standards, for material foreseeable losses, if
any, on long-term contracts including derivative
contracts - (Refer Note 6 and 27 to the 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 Note 38 to the Standalone Financial
Statements).
iv. (a) The management has represented that, to
the best of its knowledge and belief that,
no funds have been advanced or loaned
or invested (either from borrowed funds
or share premium or any other sources
or kind of funds) by the Company to or in
any other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall,
directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
(b) The management has represented that,
to the best of its knowledge and belief, no
funds have been received by the Company
from any person(s) or entity(ies), including
foreign entities ("Funding Parties"), with the
understanding, whether recorded in writing
or otherwise, that the Company shall,
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.
(c) Based on the audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
sub-clause (a) and (b) contain any material
misstatement.
v. The final dividend paid by the Company during
the year in respect of the same declared for the
previous year is in accordance with Section 123
of the Act to the extent it applies to payment of
dividend.
vi. Based on our examination which included test
checks, the Company has used accounting
software for maintaining its books of account for
the financial year ended March 31, 2025, which
have a feature of recording audit trail (edit log)
facility and the same has operated throughout
the year for all relevant transactions recorded in
such software. Further, during the course of our
audit we did not come across any instance of
audit trail feature being tampered with and the
audit trail has been preserved by the Company
as per the statutory requirements for record
retention.
For Nangia & Co LLP For M Verma & Associates
Chartered Accountants Chartered Accountants
FRN:-002391C/N500069 FRN:-501433C
Jaspreet Singh Bedi Mohender Gandhi
Partner Partner
Membership No.: 601788 Membership No.: 088396
UDIN: 25601788BMKSDH5092 UDIN: 25088396BMLKNI6297
Place: New Delhi Place: New Delhi
Date: May 16, 2025 Date: May 16, 2025
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