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GIC Housing Finance Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2018

Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2018

1. The Company has adopted Indian Accounting Standards ('Ind AS') notified under Section 133 of the Companies Act 2013 ('the Act') read with the Companies (Indian Accounting Standards) Rules, 2015 from April 01, 2018 and the effective date of transition is April 01,2017. The said transition has been carried out from the erstwhile Accounting Standards notified under the Act, read with relevant rules issued thereunder and guidelines issued by the National Housing Bank ('NHB') (Collectively referred to as 'the Previous GAAP'). Accordingly, the impact of transition has been recorded in the opening reserves as at April 01,2017. The figures for the corresponding period presented in these results have been prepared on the basis of the published results under previous GAAP, duly re-stated to Ind AS. These Ind AS adjustments have been reviewed by the statutory auditors.

These financial results have been drawn up on the basis of Ind AS that are applicable to the Company based on MCA Notification G.S.R. 111(E) and G.S.R. 365 (E) dated February 16,2015 and March 30, 2016 respectively. Any guidance/clarifications/directions issued by NHB or other regulators are adopted/implemented as and when they are issued/applicable.

2. As required by paragraph 32 of Ind AS 101, net profit reconciliation between the figures reported, net of tax, under Previous GAAP and Ind AS is given below:For Table, kindly refer Corporate Announcements on www.bseindia.com.

3. The Company has availed the exemption provided by securities and Exchange Board of India (SEBI) vide Circular No. CIR/CFD/FAL/62/2016 in respect of disclosure requirements pertaining to disclosure of financial results for the year ended March 31,2018. Accordingly , the financial results for the year ended March31,2018 is not disclosed.

4. The Company's main business is to provide loans for the purchase or construction of residential units. All other activities revolve around the main business. Hence, there are no separate reportable segments, as per Ind AS 108 dealing with Operating Segments as specified under Sec.133 of the Companies Act, 2013,

5. During the quarter, the company has received communication from National Housing Bank (NHB) in connection with the inspection carried out for Financial Year 2016-17. NHB has directed the Company to classify 683 loan accounts (Outstanding Balance- Rs 8,685 Lakhs as on 31st March 2017) as Non-Performing Assets and to make provision as per Housing Finance Companies (NHB) Directions, 2010. Pursuant to this, the Company has made a provision of Rs. 3.24 cr. (net of release of Rs. 18.93 Cr.) on such class of loan portfolio identified as on December 31, 2018. Further, NHB has directed the company to pay a penalty of Rs. 34.15 Lakhs. To which the Company has made an application to NHB, requesting for waiver of such penalty.

6. "Other Expenses' for the quarter and nine months ended December 31,2018 includes loan loss allowances amounting to Rs. 1547 Lakhs and Rs. 3502 Lakhs (net of release of Rs. 1893 Lakhs) respectively (previous period for the quarter and nine months Rs. 1463 Lakhs & Rs. 5513 Laks respectively).

7. The Statutory Auditors of the Company have carried out a "Limited Review" of the standalone financial results for the quarter and Nine months ended December 31, 2018 in compliance with Regulations 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,2015. The standalone financial results have been reviewed & recommended by the Audit Committee and approved by the Board of Directors at its meeting held on February 1, 2019.

8. Figures for the previous period have been regrouped I reclassified wherever necessary, to make them comparable with current period figures.

Neeraj Saxena
Managing Director & CEO