We have audited the accompanying Standalonefinancial statements of Aptus Value Housing FinanceIndia Limited ("the Company"), which comprise theBalance Sheet as at 31st March 2025, the Statementof Profit and Loss (including other comprehensiveincome), the Statement of Changes in Equity andthe Statement of Cash Flows for the year ended onthat date, and notes to the standalone financialstatements, including material accounting policiesand other explanatory information.
In our opinion and to the best of our informationand according to the explanations given to us, theaforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("TheAct") in the manner so required and give a true andfair view in conformity with the Indian AccountingStandards prescribed under section 133 of theAct, read with the Companies (Indian AccountingStandards) Rules 2015, as amended ("Ind AS") andother accounting principles generally accepted inIndia, of the state of affairs of the Company as at 31stMarch 2025, and its profit and total comprehensiveincome, changes in equity and its cash flows for theyear ended on that date.
We conducted our audit in accordance with theStandards on Auditing ("SA") specified under Section143(10) of the Act. Our responsibilities under thosestandards are further described in the Auditor'sResponsibilities for the Audit of the StandaloneFinancial Statements section of our report. We areindependent of the Company in accordance with theCode of Ethics issued by the Institute of CharteredAccountants of India ("ICAI") together with theindependence requirements that are relevant to ouraudit of the standalone financial statements under theprovisions of the Act and the Rules made thereunder,and we have fulfilled our other ethical responsibilitiesin accordance with these requirements and the ICAI'sCode of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to providea basis for our audit opinion on the standalonefinancial statements.
Key Audit Matters
Key audit matters are those matters that, in ourprofessional judgement, were of most significancein our audit of the standalone financial statementsfor the financial year ended March 31, 2025. Thesematters were addressed in the context of our auditof the standalone financial statements as a whole,and in forming our opinion thereon, and we do notprovide a separate opinion on these matters. We havedetermined the matters described below to be thekey audit matters to be communicated in our report.
Key Audit Matter
How our audit addressed the Key Matter
Impairment Loss Allowance
Management's judgements in the calculation ofimpairment allowances have significant impact onthe standalone financial statements. The estimatesregarding impairment allowances are complex andrequire a significant degree of judgement, whichincreased with implementation of Expected CreditLoss ("ECL") approach as required by Ind AS 109relating to "Financial instruments".
Management is required to determine the expectedcredit loss that may occur over either a 12-monthperiod or the remaining life of an asset, depending onthe categorisation of the individual asset.
The key areas of judgement include:
1. Categorisation of loans in Stage 1, 2 and 3 basedon identification of:
(a) exposures with significant increase in creditrisk since their origination and
(b) individually impaired / default exposures.
• We obtained an understanding of management'sassessment of impairment of loans and advancesincluding the IndAS109 implementation process,internal rating model, impairment allowancepolicy and ECL modelling methodology.
• We assessed the design and implementation andtested the operating effectiveness of controlsover the modelling process including governanceover monitoring of the model and approval of keyassumptions.
• We also verified the key judgements andassumptions relating to the macro-economicscenarios including the impact of Covid-19Pandemic and the associated probability weights.
• We also assessed the approach of the Companyfor categorisation of the loans in various stagesreflecting the inherent risk in the respective loans.
2. Techniques used to determine Loss Given Default('LGD') and Probability of Default ('PD') to calculatean ECL based on experience.
3. The impact of different future macroeconomicconditions in the determination of ECL.
These judgements required the models to bereassessed including the impact of Covid-19Pandemic to measure the ECL.
Management has made several interpretations andassumptions when designing and implementingmodels that are compliant with the standard.
The accuracy of data flows and the implementationof related controls is critical for the integrity ofthe estimated impairment provisions. Given thesignificance of judgements and the high complexityrelated particularly to the calculation of ECL weconsidered this area as a Key Audit Matter.
• For a sample of financial assets, we tested thecorrectness of Staging, reasonableness of PD,accuracy of LGD and ECL computation.
• We have also verified the compliance of circularsissued by Reserve Bank of India from time to timeduring the year on this subject.
As a result of the above audit procedures, no materialdifferences were noted. We confirm the adequacy ofdisclosures made in the financial statements.
IT Systems and Controls
The Company's key financial accounting and reportingprocesses are highly dependent on the automatedcontrols in information systems.
Any control lapses, validation failures, incorrect inputdata and wrong extraction of data may result in thefinancial accounting and reporting records beingmisstated.
• We tested a sample of key controls operating overthe information technology in relation to financialaccounting and reporting systems, includingsystem access and system change management,program development and computer operations.
• We tested the design and operating effectivenessof key controls over user access managementwhich includes granting access right, new usercreation, removal of user rights and preventativecontrols designed to enforce segregation ofduties.
• We have focused on user access management,change management, segregation of duties,system reconciliation controls and systemapplication controls over key financial accountingand reporting systems.
• Reliance was also placed on the System Auditreport of the Company.
• Based on our review, no material weakness wasfound in the IT Systems and Controls.
The Company's Board of Directors is responsible forthe preparation of the other information. The otherinformation comprises the information included in theManagement Discussion and Analysis, Board's Reportincluding Annexures to Board's Report, CorporateGovernance and Shareholder's Information, but doesnot include the standalone financial statements andour auditor's report thereon.
Our opinion on the standalone financial statementsdoes not cover the other information and we do notexpress any form of assurance conclusion thereon.
In connection with our audit of the standalonefinancial statements, our responsibility is to read theother information and, in doing so, consider whether
the other information is materially inconsistent withthe standalone financial statements, or our knowledgeobtained during the course of our audit or otherwiseappears to be materially misstated.
If, based on the work we have performed, we concludethat there is a material misstatement of this otherinformation, we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management and those chargedwith Governance for the Financial Statements
The Company's Board of Directors is responsiblefor the matters stated in Section 134(5) of the Actwith respect to the preparation of these standalonefinancial statements that give a true and fair view ofthe financial position, financial performance includingother comprehensive income, cash flows and
changes in equity of the Company in accordancewith the accounting principles generally acceptedin India, including the Accounting Standardsspecified under Section 133 of the Act, read with theCompanies (Indian Accounting Standards) Rules,2015. This responsibility also includes maintenance ofadequate accounting records in accordance with theprovisions of the Act for safeguarding the assets of theCompany and for preventing and detecting fraudsand other irregularities; selection and application ofappropriate accounting policies; making judgementsand estimates that are reasonable and prudent;and design, implementation and maintenanceof adequate internal financial controls, that wereoperating effectively for ensuring the accuracy andcompleteness of the accounting records, relevant tothe preparation and presentation of the standalonefinancial statements that give a true and fair view andare free from material misstatement, whether due tofraud or error.
In preparing the standalone financial statements,the management is responsible for assessing theCompany's ability to continue as a going concern,disclosing, as applicable, matters related to goingconcern and using the going concern basis ofaccounting unless the management either intends toliquidate the Company or to cease operations, or hasno realistic alternative but to do so.
The Board of Directors are also responsible foroverseeing the Company's financial reportingprocess.
Our objectives are to obtain reasonable assuranceabout whether the standalone financial statementsas a whole are free from material misstatement,whether due to fraud or error, and to issue anauditor's report that includes our opinion. Reasonableassurance is a high level of assurance, but is not aguarantee that an audit conducted in accordancewith SAs will always detect a material misstatementwhen it exists. Misstatements can arise from fraud orerror and are considered material if, individually or inthe aggregate, they could reasonably be expected toinfluence the economic decisions of users taken onthe basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exerciseprofessional judgement and maintain professionalskepticism throughout the audit. We also:
• Identify and assess the risks of materialmisstatement of the standalone financialstatements, whether due to fraud or error, designand perform audit procedures responsive to thoserisks, and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion.The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery,intentional omissions, misrepresentations, or theoverride of internal control.
• Obtain an understanding of internal financialcontrols relevant to the audit in order to designaudit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of theCompanies Act, 2013, we are also responsible forexpressing our opinion on whether the Companyhas adequate internal financial controls systemin place and the operating effectiveness of suchcontrols.
• Evaluate the appropriateness of accountingpolicies used and the reasonableness ofaccounting estimates and related disclosures inthe standalone financial statements made by themanagement.
• Conclude on the appropriateness ofmanagement's use of the going concern basisof accounting and, based on the audit evidenceobtained, whether a material uncertainty existsrelated to events or conditions that may castsignificant doubt on the Company's ability tocontinue as a going concern. If we conclude thata material uncertainty exists, we are requiredto draw attention in our auditor's report to therelated disclosures in the standalone financialstatements or, if such disclosures are inadequate,to modify our opinion. Our conclusions are basedon the audit evidence obtained up to the dateof our auditor's report. However, future events orconditions may cause the Company to cease tocontinue as a going concern.
• Evaluate the overall presentation, structure, andcontent of the standalone financial statements,including the disclosures, and whether thestandalone financial statements represent theunderlying transactions and events in a mannerthat achieves fair presentation.
Materiality is the magnitude of misstatements in thestandalone financial statements that, individually orin aggregate, makes it probable that the economicdecisions of a reasonably knowledgeable user of thestandalone financial statements may be influenced.We consider quantitative materiality and qualitativefactors in (i) planning the scope of our audit workand in evaluating the results of our work; and (ii) toevaluate the effect of any identified misstatements inthe standalone financial statements.
We communicate with those charged withgovernance regarding, among other matters, theplanned scope and timing of the audit and significantaudit findings, including any significant deficiencies ininternal control that we identify during our audit.
We also provide those charged with governance witha statement that we have complied with relevant
ethical requirements regarding independence, andto communicate with them all relationships and othermatters that may reasonably be thought to bear onour independence, and where applicable, relatedsafeguards.
From the matters communicated with those chargedwith governance, we determine those matters thatwere of most significance in the audit of the standalonefinancial statements of the current period and aretherefore the key audit matters. We describe thesematters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when,in extremely rare circumstances, we determine thata matter should not be communicated in our reportbecause the adverse consequences of doing sowould reasonably be expected to outweigh the publicinterest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report)Order, 2020 ("the Order") issued by the CentralGovernment of India in terms of sub-section (11) ofsection 143 of the Act, we give in "Annexure A" tothis Report, a statement on the matters specifiedin para 3 and 4 of the said Order.
2. As required by Section 143 (3) of the Act, we reportthat:
a) we have sought and obtained all theinformation and explanations which tothe best of our knowledge and belief werenecessary for the purposes of our audit;
b) in our opinion, proper books of accountas required by law have been kept by theCompany so far as it appears from ourexamination of those books;
c) the Balance Sheet, the Statement of Profit andLoss, the Statement of Changes in Equity andthe Statement of Cash Flows dealt with bythis report are in agreement with the books ofaccount;
d) in our opinion, the aforesaid standalonefinancial statements comply with theAccounting Standards specified underincluding the Accounting Standards specifiedunder Section 133 of the Act, read with theCompanies (Indian Accounting Standards)Rules, 2015;
e) on the basis of the written representationsreceived from the directors as on 31st March2025 taken on record by the Board of Directors,none of the directors is disqualified as on31st March 2025 from being appointed as adirector in terms of Section 164 (2) of the Act;
f) with respect to the adequacy of the internalfinancial controls over financial reporting ofthe Company and the operating effectiveness
of such controls, refer to our separate Reportin "Annexure B";
g) with respect to the other matters to beincluded in the Auditor's Report in accordancewith the requirements of section 197(16) of theAct, as amended:
In our opinion and to the best of our informationand according to the explanation given to us,the remuneration paid by the Company toits directors during the year is in accordancewith the provisions of Section 197 of the Act.
h) with respect to the other matters to beincluded in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit andAuditors) Rules, 2014, in our opinion and to thebest of our information and according to theexplanations given to us:
i. As disclosed by the company in note 28.2to the standalone financial statements,the Company has no pending litigationsas at March 31, 2025, which would impactits financial position.
ii. The Company did not have any long-termcontracts including derivative contractsfor which there were any materialforeseeable losses.
iii. There were no amounts which wererequired to be transferred to the InvestorEducation and Protection Fund by theCompany.
iv. a) The management has represented
that, to the best of its knowledge and belief,no funds have been advanced or loanedor invested (either from borrowed fundsor share premium or any other sources orkind of funds) by the Company to or in anyother person(s) or entity(ies), includingforeign entities ("Intermediaries"), withthe understanding, whether recorded inwriting or otherwise, that the Intermediaryshall, whether, directly or indirectly lend orinvest in other persons or entities identifiedin any manner whatsoever by or on behalfof the Company ("Ultimate Beneficiaries")or provide any guarantee, security or thelike on behalf of the Ultimate Beneficiaries.
b) The management has represented,that, to the best of its knowledge andbelief, no funds have been receivedby 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, whether, directlyor indirectly, lend or invest in other personsor entities identified in any manner
whatsoever by or on behalf of the FundingParty ("Ultimate Beneficiaries") or provideany guarantee, security or the like onbehalf of the Ultimate Beneficiaries; and
c)Based on the audit procedures thathas been considered reasonable andappropriate in the circumstances, nothinghas come to our notice that has causedus to believe that the representationsunder sub-clause (i) and (ii) of Rule 11(e)contain any material misstatement.
v. As stated in Note 20.2.5 to the standalonefinancial statements,
The interim dividend declared and paidby the company during the year is incompliance with section 123 of the Act.
vi. With respect to Rule 11(g) of Companies(Audit & Auditors) Rules, 2014, onmaintenance of audit trail, transactionand edit log, based on our examinationwhich included test checks, the Companyhas used multiple accounting softwaresfor maintaining its books of account whichhas the feature of recording audit trail (editlog) facility and the same has operatedthroughout the year for all relevant
transactions recorded in the software.Further, during the course of our audit, wedid not come across any instance of audittrail feature being tampered with.
As proviso to Rule 3(1) of the Companies(Accounts) Rules, 2014 is applicable fromApril 1, 2023, reporting under Rule 11(g) ofCompanies (Audit and Auditors) Rules,2014 on preservation of audit trail as perthe statutory requirements for recordretention has been retained for thefinancial year ended March 31, 2025.
Chartered Accountants
FRN: 004207S
Partner
Membership Number: 211785
Date : 06th May 2025
Place : Chennai
UDIN : 25211785BMIUOO6264