Mar 31, 2018
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Ansal Housing and Construction Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Cash Flows and the Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information (herein after referred as âStandalone Ind AS Financial Statementsâ).
Managementâs Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of the state of affairs (financial position), profit or loss (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 (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS 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 Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 Ind AS 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 Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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 including the Ind AS, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its loss (financial performance including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
a. Attention is invited to Note 42 to the standalone Ind AS financial statements regarding companyâs investment of Rs. 491.67 lakh in a wholly owned subsidiary company in Sri Lanka by way of equity shares. The subsidiary company had filed an arbitration claim against the Board of Investment of Sri Lanka (BOI) which has been withdrawn during the year and company gone for settlement. The BOI has terminated the agreements for development of integrated township in Sri Lanka between the subsidiary and the BOI. During the year, the management of the subsidiary company has written off all assets. Now the subsidiary company does not have enough assets to redeem the said investment but management of the company is of the opinion that they will be able to redeem the said investment through the settlement and write down of Investment is not required at this stage.
b. We draw attention to Note 1.19 & 33 to the standalone Ind AS financial statements which describe the uncertainty relating to the outcome of certain matters pending in litigation with Courts/Appellate Authorities, pending the final outcome of the aforesaid matters, which is presently unascertainable, no adjustments have been made in these standalone Ind AS financial statements.
Our opinion is not modified in respect of these matters.
Other Matter
a. Incoming auditor to audit comparative information for adjustments to transition to Ind AS
The comparative financial information of the Company for the year ended 31st March 2017 and the transition date opening balance sheet as at 1st April 2016 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended 31st March 2017 and 31st March 2016 dated 29th May 2017 and 30th May 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the Company on transition to the Ind AS, which have been audited by us.
b. Refer Note 1.19 of standalone Ind AS Financial Statements, the status of various ongoing projects, recognition of expense and income and the realizable value of the costs incurred are as per the judgment of Management of the Company and certified by their technical personnel and being of technical nature, have been relied upon by us.
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 subsection 11 of section 143 of the Act, we give in the âAnnexure Aâ; a statement on the matters specified in the 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 purpose 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, the Statement of Profit and Loss, the Cash Flow Statement and 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 Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with Rules issued thereunder.
(e) On the basis of written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 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 and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; 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 Ind AS financial statements - Refer Note 33 to the standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Based on the audit procedures performed for the purpose of reporting a true and fair view on the standalone Ind AS financial statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit and to the best of our knowledge and belief, we report that:-
(i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets have been physically verified by the management in accordance with a regular programme of verification which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such physical verification.
(c) The title deeds of immovable properties included in fixed assets of the Company are held in the name of the Company.
(ii) The inventory of building materials, stores and spares, restaurantâs provisions, beverages etc., land and flats/shops/houses etc. At major locations has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. According to the information and explanations given to us, keeping in view the nature of the operations of the company, inventory of work-in-progress cannot be physically verified. As explained to us, there was no material discrepancies noticed on physical verification of inventory.
(iii) The company has not granted loans, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Therefore the provisions of Clause 3(iii)(a),(b) and (c) of the said Order are not applicable to the company.
(iv) In our opinion, in respect of loans, investments, guarantees, and security provisions of section 185 and 186 of the Companies Act, 2013 have been complied with.
(v) During the previous year, the company approached the National Company Law Tribunal (NCLT), New Delhi, under section 74(2) of the companies act, 2013 seeking approval for extension of time to repay the deposits which was received vide NCLTâs order dated 3rd October, 2016. The total outstanding deposits at the time of Companyâs application to the NCLT amounting to Rs. 8457.47 Lacs are generally being repaid by the company as per the terms of NCLT Orders though there are some overdue amounts. However, the NCLT vide its order dated 1st December,2017 has permitted to pay Rs. 125.00 Lakh per month including hardship cases and same scheme has been extended by NCLT till July 2018 vide its latest order dated 10.05.2018. The Company is in the process of complying with the above NCLT orders (Refer Note No 16.7 of the standalone Ind AS financial statements). Further in our opinion and according to the information and explanations given to us, the provision of sections 73 to 76 or any other relevant provisions of Companies Act, 2013 and the rules framed thereunder, wherever applicable, have been complied with by the Company.
(vi) We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records under section 148(1) of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. However, we have not, nor we are required, carried out detailed examination of such accounts and records.
(vii) (a) On the basis of our examination of the records of the company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, value added tax, cess and any other statutory dues have not been regularly deposited during the year by the company with the appropriate authorities and there have been delays in a large number of cases. We are informed that the Companyâs operations during the year did not give rise to any liability for customs duty and excise duty.
In our opinion, no undisputed dues were in arrears as at 31st March, 2018 for a period of more than six months from the date they became payable except following dues:-
Name of the Statute |
Nature of dues |
Amount (Rs. In Lacs) |
Period to which the amount relates |
Due Dates |
Date of Payments |
Remarks |
Haryana VAT Act |
Value Added Tax (including interest) |
1126.36 |
Apr 14 - June 17 |
Monthly |
Unpaid |
- |
Building and Other Construction Workers Act |
Labour Cess |
516.33 |
Upto March, 17 |
Yearly |
Unpaid |
- |
Income Tax |
Tax deducted at source |
66.34 |
July 17 - August 17 |
Monthly |
April 18 to May 18 |
- |
(b) On the basis of our examination of the books of accounts and records, the details of the dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax or cess which have not been deposited on account of any dispute, are as under:-
Name of the Statute |
Nature of dues |
Amount (Rs. In Lakh) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act |
Income tax |
847.99 |
AY 1989-90 to 1997-98 & 2002-03 to 2006-07 |
Supreme Court |
Income Tax Act |
Income tax |
96.71 |
Assessment Year2011-12 and 2012-13 |
Commissioner ofIncome Tax (Appeals), New Delhi |
UP Sales Tax Act |
Sales Tax |
76.13 |
Assessment Years 2004-05 to 2006-07 |
Tribunal, Commercial Tax, Ghaziabad |
UP Value Added Tax Act |
Sales Tax |
304.76 |
Assessment Years 2007-08 to 2013-14 |
Tribunal, Commercial Tax, Ghaziabad |
MP Value Added Tax Act |
Sales Tax |
5.00 |
Assessment Year 2008-09 |
Tribunal, Commercial Tax, Bhopal |
Employees Provident Fund Act |
Provident Fund |
33.39 |
June 1994 to March 2006 |
Delhi High Court |
(viii) On the basis of our examination of the books of accounts and records and explanations given to us, we are of the opinion that the Company has defaulted in the repayment of dues including interest to banks and financial institutions covered by the Order during the year. While there were delays in repayment on different occasions during the year, the relevant amounts have been paid to the respective banks and financial institutions during the year or loans have been restructured during the year. The delays which have remained outstanding at the year end are given below:
Particulars |
Amount of default as on Balance Sheet Date (Rs. In Lakh) |
Period of Default |
||
Principal |
Interest |
Principal |
Interest |
|
Due to Banks: |
||||
- Punjab National Bank |
2.43 |
1 to 30 days |
||
Due to Financial Institutions: |
||||
- HDFC Ltd. |
258.61 |
15 to 59 days |
||
- IFCI Ltd. |
6.00 |
173.73 |
15 to 44 days |
15 to 31 days |
Further the company does not have any debentures and loan from government.
(ix) In our opinion, the Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year and term loans obtained for financing real estate projects, in our opinion, were used for the real estate projects on an overall basis.
(x) In our opinion, no material fraud by the company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) In our opinion, the company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) Based on our examination of the records of the Company and in our opinion, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone Ind AS financial statements as required by the applicable Indian Accounting Standards.
(xiv) Based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence not commented upon.
(xv) Based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
(xvi) Based on our examination of the records of the Company, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
To the Members of Ansal Housing and Construction Limited
We have audited the internal financial controls over financial reporting of Ansal Housing and Construction Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Dewan P.N. Chopra & Co.
Chartered Accountants
Firm Regn. No. 000472N
(Sandeep Dahiya)
Place : New Delhi Partner
Date :29th May, 2018 Membership No. 505371
Mar 31, 2016
To the Members of
Ansal Housing and Construction Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Ansal Housing & Construction Limited ("the Company"), which comprise the Balance Sheet as at 31st March 2016, 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.
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 Companies Act, 2013 (''''the Act") with respect to the preparation and presentation 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
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 there under.
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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone 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 31st March 2016, and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
Attention is invited to Note No. 33 to the financial statements regarding excess remuneration paid to the Chairman and Managing Director of the Company of Rs. 111.79 lacs during the year 2015 16. The Company has applied to the Central Government under section 197(3) of the Companies Act, 2013 for approval of excess remuneration which is awaited.
Our opinion is not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. 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 statement on the matters specified in paragraphs 3 and 4 of the Order.
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 the law have been kept by the Company so far as it appears from our examination of those books.
(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) On the basis of the written representations received from the directors as on 31st March 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2016 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 and the operating effectiveness of such controls, refer to our separate report in ''Annexure - A''.
(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 its financial position in its financial statements - Refer to Note No. 28.1 to the financial statements.
ii. As the company follows percentage of completion method of accounting for revenue recognition from real estate development contracts, in a few cases projects may result in a loss in a particular year which are generally set off against profits in the future years. The management has confirmed to us that there are no material foreseeable losses in the case of long term contracts.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under the heading ''Report on Other Legal and Regulatory Requirements'' of our report of even date)
Based on the audit procedures performed for the purpose of reporting a true and fair view on the Financial Statements of the Company and taking into consideration the information and explanations given to us and the books and accounts and other records examined by us in the normal course of audit, we report that:
1. a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) As explained to us, the fixed assets have been physically verified by the management in accordance with a regular programme of verification which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such physical verification.
c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties included in fixed assets of the Company are held in the name of the Company.
2. As per information and explanations given to us, the inventory of building materials, stores and spares, restaurant''s provisions, beverages etc. land and flats/shops/houses etc. at major locations has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. According to the information and explanations given to us, keeping in view the nature of the operations of the Company, inventory of work-in-progress cannot be physically verified. As explained to us, there were no material discrepancies noticed on physical verification of inventory.
3. The Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Companies Act, 2013. Therefore the provisions of Clause 3(iii)(a),(b) and (c) of the said Order are not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, there are no loans and securities granted in respect of which provisions of Section 185 and 186 of the Companies Act, 2013 are applicable. In our opinion and according to the information and explanations given to us, the Company has complied with provisions of section 186 of the Companies Act, 2013 in respect of guarantees given and investments made during the year.
5. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under. According to the information and explanations given to us, in this regard, no order under the aforesaid sections has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal on the Company.
6. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the same.
7.a) According to the information and explanations given to us and records of the Company examined by us, in our opinion, the Company is generally regular in depositing with appropriate authorities undisputed statutory dues relating to provident fund, investor education and protection fund, employees state insurance, income-tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues, wherever applicable. However, there were delays in the deposit of value added tax, service tax, labour cess and advance tax during the year. Other than for undisputed amount of value added tax of Rs.11.07 lacs and employee state insurance of Rs 0.13 lacs, there are no undisputed amounts payable in respect of these dues which have remained outstanding at 31st March, 2016 for a period of more than six months from the date they became payable. In respect of labour cess, the amount outstanding for a period of more than six months as on 31st March, 2016 has not been quantified.
b) According to the information and explanations given to us and the records of the Company examined by us, the disputed amounts payable in respect of income-tax, sales tax, wealth tax, custom tax and excise duty / cess not deposited with the appropriate authorities are as follows:
Name of the statute |
Nature of dues |
Amount * (Rs. In lacs) |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act |
Income Tax |
765.79 |
Various Assessment Years |
Supreme Court |
Income Tax Act |
Income Tax |
52.69 |
Assessment Years 2011-12 and 2012-13 |
Commissioner of Income Tax (Appeals), New Delhi |
Wealth Tax Act |
Wealth Tax |
0.49 |
Assessment Year 2004-05 |
CWT (Appeals)-I, New Delhi |
UP Sales Tax Act |
Sales Tax |
86.31 |
Assessment Years 2003-04 to 2007-08 |
Tribunal, Commercial Tax, Ghaziabad |
UP Value Added Tax Act |
Sales Tax |
106.55 |
Assessment Years 2007-08 to 2010-11 |
Tribunal, Commercial Tax, Ghaziabad |
UP Value Added Tax Act |
Sales Tax |
67.53 |
Assessment 2011-12 |
Additional Commercial of Trade Tax, Ghaziabad |
MP Value Added Tax Act |
Sales Tax |
5.00 |
Assessment Year 2008-09 |
Tribunal, Commercial Tax, Bhopal |
Haryana Value Added Tax Act |
Sales Tax |
79.46 |
Assessment Year 2010-11 |
Joint Excise & Taxation Commissioner (Appeals), Haryana |
Employees Provident Fund Act |
Provident Fund |
33.39 |
June 1994 to March 2006 |
Delhi High Court |
The Finance Act, 1994 |
Service Tax |
271.31 |
October 2003 to March 2010 |
Custom, Excise and Service Tax Appellate Tribunal, New Delhi |
* The amounts are net of payments made under protest to the authorities.
8. According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks and financial institutions covered by the Order during the year. The Company does not have any debentures and loan from government.
9. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. According to the information and explanations given to us and the records examined by us, term loans obtained for financing real estate projects, in our opinion, on an overall basis, were used for the real estate projects.
10. According to the information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Companies Act, 2013. However, in the case of Chairman and Managing Director, the remuneration paid during the year 2015-16 is in excess of the limit provided in Section 197 read with Schedule V to the Companies Act, 2013 by Rs. 111.79 lacs due to inadequacy of the profit for the year computed in the manner referred to in Section 198 of the Companies Act, 2013. The Company has applied to the Central Government under section 197(3) of the Companies Act, 2013 for approval of excess remuneration which is awaited.
12. In our opinion, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence not commented upon.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him.
16. According to the information and explanations given to us, the provisions of Section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
ANNEXURE ''A''TOTHE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ONTHE STANDALONE FINANCIAL STATEMENTS OF ANSAL HOUSING AND CONSTRUCTION LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Actâ) To the Members of Ansal Housing and Construction Limited
We have audited the internal financial controls over financial reporting of Ansal Housing and Construction Limited ("the Companyâ) as of March 31, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date. Management''s Responsibility for Internal Financial Controls
The Company''s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to Company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Noteâ) and the Standards on Auditing, as specified under Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A Company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India
For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 001297N)
Place : New Delhi (Jitender Dhingra)
Date : 30th May, 2016 Partner
Membership No. 90217
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Ansal Housing & Construction Limited ("the Company"), which comprise
the Balance Sheet as at 31 March 2015, 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.
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 Companies Act, 2013 (''the Act") with respect
to the preparation and presentation 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 financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
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
there under.
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 financial statements
are free from material misstatement. An audit involves performing
procedures to obtain audit evidence about the amounts and the
disclosures in the financial statements. The procedures selected
depend on the auditor's judgment, including the assessment of the risks
of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers
internal financial control relevant to the Company's preparation of the
financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on whether the Company has in
place an adequate internal financial controls system over financial
reporting and the operating effectiveness of such controls. An audit
also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the
Company's Directors, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Basis of Qualified Opinion
The managerial remuneration paid to the Managing Director of the
Company during the year is in excess of the limit provided in Section
197 read with Schedule-V of the Companies Act, 2013 by Rs. 84.57 lacs
due to the inadequacy of the profit for the year computed in the manner
referred to in Section 198 of the Companies Act, 2013. The Company has
decided to apply to the Central Government under Section 197(10) of the
Companies Act, 2013. No adjustments in this respect have been made in
the accounts.
Qualified Opinion
Subject to our comment under basis of qualified 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 March 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("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
statement on the matters specified in paragraphs 3 and 4 of the Order.
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 the law have
been kept by the Company so far as it appears from our examination of
those books.
(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) On the basis of the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act; and
(f ) 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 its
financial position in its financial statements  Refer to Note No. 28.1
to the financial statements. ii. As the company follows percentage of
completion method of accounting for revenue from real estate
development contracts, in a few cases projects may result in a loss in
a particular year which are generally set of against profits of the
future years. The management has confirmed to us that there are no
material foreseeable losses in the case of long term contracts. iii.
There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Independent Auditors' Report
(Referred to in paragraph 1 under the heading 'Report on Other legal
and Regulatory Requirements' of our report of even date)
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the Financial Statements of the Company and
taking into consideration the information and explanations given to us
and the books and accounts and other records examined by us in the
normal course of audit, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets are physically verified by the
management in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets. According to the information and explanations given to us, no
material discrepancies were noticed on such physical verification.
2. a) As per information and explanations given to us, the inventory
of building materials, stores and spares, restaurant's provisions,
beverages etc. and fats/shops/ houses etc. at major locations has been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable. According to the
information and explanations given to us, keeping in view the nature of
the operations of the Company, inventory of work-in-progress cannot be
physically verified.
b) In our opinion and according to the explanations given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. The Company had granted unsecured interest free loan of Rs, 500
lacs to a wholly owned subsidiary company in the earlier years which
was repaid during the year. In respect of loan given to the wholly
owned subsidiary, there was no stipulation regarding repayment and the
loan given was interest free.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fixed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures.
5. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
73 to 76 or any other relevant provisions of the Companies Act, 2013
and the rules framed there under. According to the information and
explanations given to us, in this regard, no order under the aforesaid
sections has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the Company.
6. As per information and explanations given to us and as broadly
reviewed by us, the Company has maintained the cost records prescribed
by the Central Government under sub-section (1) of section 148 of the
Companies Act, 2013. We have, however, not made a detailed examination
of the records with a view to determine whether they are accurate or
complete.
7. a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues relating to provident fund, investor education and
protection fund, employees state insurance, income-tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues, wherever applicable. However, there were delays in
deposit of employee state insurance dues and sales tax in a few cases
and in the deposit of service tax and advance tax during the year.
Other than for undisputed amount of employee state insurance of Rs,
0.23 lacs, according to the information and explanations given to us,
there are no undisputed amounts payable in respect of these dues which
have remained outstanding at 31st March, 2015 for a period of more than
six months from the date they became payable.
b) According to the information and explanations given to us and the
records of the Company examined by us, the disputed amounts payable in
respect of income-tax, sales tax, wealth tax, custom duty and excise
duty / cess not deposited with the appropriate authorities are as
follows:
Name of the statute Nature of dues Amount *
(Rs, In lacs)
Income Tax Act Income Tax 765.79
Wealth Tax Act Wealth Tax 0.49
UP Sales Tax Act Sales Tax 84.08
UP Value Added Tax Act Sales Tax 381.33
UP Value Added Tax Act Sales Tax 56.94
MP Value Added Tax Act Sales Tax 5.00
Haryana Value Added Sales Tax 79.46
Tax Act
Employees Provident Provident Fund 33.39
Fund Act
The Finance Act, 1994 Service Tax 271.31
NAME OF THE STATUTE Period to which the
amount Forum where dispute
relates is pending
Income Tax Act Various Assessment
Years Supreme Court
Wealth Tax Act Assessment Year
2004-05 CWT (Appeals)-I,
New Delhi
UP Sales Tax Act Assessment
Years 2003-04 to Tribunal, Commercial
Tax,
2007-08 Ghaziabad
UP Value Added Tax Act Assessment Years
2007-08 to Tribunal, Commercial
Tax,
2010-11 Ghaziabad
UP Value Added Tax act Assessment
2013-14 Additional Commercial of
Trade Tax, Ghaziabad
MP Value Added Tax Act Assessment Year
2008-09 Tribunal, Commercial
Tax, Bhopal
Haryana Value Added Tax Assessment Year
Act 2010-11 Joint Excise & Taxation
Commissioner (Appeals),
Haryana
Employees Provident June 1994 to
Fund act March 2006 Delhi High Court
The Finance Act,1994 October 2003 to
March 2010 Custom, Excise and
Service Tax Appellate
Tribunal, New Delhi
* The amounts are net of payments made under protest to the
authorities.
c) According to the information and explanations given to us the
amounts which are required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 and rules made there under have been transferred to
such fund within time.
8. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
9. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in the repayment of dues to banks and financial institutions covered by
the Order during the year.
10. The Company has given guarantees for loans taken by its wholly
owned subsidiaries and other companies from banks or financial
institutions. In our opinion and based on the information and
explanations given to us, the terms and conditions of the guarantees
are not, prima facie, prejudicial to the interest of the Company.
11. According to the information and explanations given to us and the
records examined by us, terms loans obtained for financing real estate
projects, in our opinion, on an overall basis, were used for the real
estate projects.
12. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 001297N)
(Jitender Dhingra)
Place : New Delhi Partner
Date : 27th May, 2015 Membership No. 90217
Mar 31, 2014
We have audited the accompanying financial statements of Ansal Housing
and Construction Limited ("the Company"), which comprise the Balance
Sheet as at 31 March, 2014, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash Bows of the Company in
accordance with the Accounting Standards notified under of the
Companies Act, 1956 ("the Act") read with the General Circular 15/2013
dated 13th September, 2013 of the Ministry of Corporate Affairs in
respect of Section 133 of the Companies Act, 2013 and in accordance
with the accounting principles generally accepted in India. This
responsibility includes the design, implementation and maintenance of
internal controls relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatements, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal controls relevant to
the Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company''s internal control. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31 March, 2014;
b) in the case of the Statement of Profit and Loss, of the profit of
the Company for the year ended on that date and
c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we 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, 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 Balance Sheet, the Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
notified under the Act read with the General Circular 15/2013 dated
13th September, 2013 of the Ministry of Corporate Affairs in respect of
Section 133 of the Companies Act, 2013.
e) On the basis of the written representations received from the
directors as on 31 March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2014
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
Annexure to the Independent Auditors'' Report
(Referred to in paragraph 1 under the heading ''Report on Other legal
and Regulatory Requirements'' of our report of even date)
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the Financial Statements of the Company and
taking into consideration the information and explanations given to us
and the books and accounts and other records examined by us in the
normal course of audit, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets are physically verified by the
management in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
c) The Company has not disposed off a substantial part of the fixed
assets during the year and hence the going concern assumption is not
affected.
2. a) As per information and explanations given to us, the inventory
of building materials, stores and spares, restaurant''s provisions,
beverages etc. and Iflats/shops/ houses etc. at major locations has
been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable. According to the
information and explanations given to us, keeping in view the nature of
the operations of the Company, inventory of work-in-progress can not be
physically verified.
b) In our opinion and according to the explanations given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. a) The Company has granted unsecured interest free loan to a wholly
owned subsidiary company. The maximum amount involved during the year
and the year end balance of loan was Rs. 500 lacs.
b) The loan is interest free being given to a wholly owned subsidiary.
c) In respect of loan given to the wholly owned subsidiary, there is no
stipulation regarding repayment.
d) The Company has taken unsecured loan from two companies covered in
the register maintained under section 301 of the Companies Act, 1956
during the year. The maximum amount of loan during the year and the
year end balance was Rs. 2135 lacs.
e) In our opinion, the rate of interest and other terms and conditions
of such deposits are not, prima facie, prejudicial to the interest of
the Company.
f) In respect of loans taken by the Company, payment of interest has
been regular. The principal amount has not become due for payment
during the year
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fixed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures.
5. In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements during the year
that are needed to be entered in the register maintained in pursuance
of section 301 of the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies Acceptance of Deposits Rules, 1975. According to
the information and explanations given to us, in this regard, no order
under the aforesaid sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. As per information and explanations given to us and as broadly
reviewed by us, the Company has maintained the cost records pursuant to
the Companies (Cost Accounting Record) Rules 2011 prescribed by the
Central Government under section 209 (1) (d) of the Companies Act,
1956. We have, however, not made a detailed examination of the records
with a view to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues relating to provident fund, investor education and
protection fund, employees state insurance, income-tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues, wherever applicable. However, there were delays in
deposit of service tax, sales tax and advance tax during the year.
According to the information and explanations given to us, there are no
undisputed amounts payable in respect of these dues which have remained
outstanding at 31st March, 2014 for a period of more than six months
from the date they became payable.
b) According to the information and explanations given to us and the
records of the Company examined by us, the disputed amounts payable in
respect of income-tax, sales tax, wealth tax, custom tax and excise
duty / cess not deposited with the appropriate authorities are as
follows:
Name of the statute Nature of Amount *
dues (Rs. in lacs)
Income Tax Act Income Tax 765.79
Income Tax Act Income Tax 94.69
Wealth Tax Act Wealth Tax 0.49
UP Sales Tax Act Sales Tax 84.08
UP Value Added Tax Act Sales Tax 85.93
UP Value Added Tax Act Sales Tax 270.96
UP Value Added Tax Act Sales Tax 186.39
MP Value Added Tax Act Sales Tax 4.62
Haryana Value Added Tax Act Sales Tax 79.46
Employees Provident Fund Act Provident
Fund 33.39
The Finance Act, 1994 Service Tax 271.31
Name of the statute Period to which Forum where dispute is
the amount relates pending
Income Tax Act Various Assessment
Years Supreme Court
Income Tax Act Assessment Years CIT (Appeals), New Delhi
2009-10 to 2011-12
Wealth Tax Act Assessment Year
2004-05 CWT (Appeals)-I, New Delhi
UP Sales Tax Act Assessment Years Tribunal, Commercial Tax,
2003-04 Ghaziabad to 2007-08
UP Value Added Tax Act Assessment Years Tribunal, Commercial Tax,
2007-08 Ghaziabad to 2008-09
UP Value Added Tax Act Assessment Year Deputy Commissioner of
2010-11 Trade Tax, Ghaziabad
UP Value Added Tax Act Assessment Years Additional Commissioner
2009-10 of Trade and 2013-14
Tax, Ghaziabad
MP Value Added Tax Act Assessment Year Tribunal, Commercial Tax,
2008-09 Bhopal
Haryana Value Added Assessment Year Joint Excise & Taxation
Tax Act 2010-11 Commissioner (Appeals),
Haryana
Employees Provident June 1994 to Delhi High Court
Fund Act March 2006
The Finance Act, 1994 October 2003 to Custom, Excise and
March 2010 Service Tax Appellate
Tribunal, New Delhi
* The amounts are net of tax paid under protest to the authorities.
10. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in the repayment of dues to banks and financial institutions covered by
the Order during the year.
12. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. The Company has given guarantees for loans taken by its wholly
owned subsidiaries and other companies from banks or financial
institutions. In our opinion and based on the information and
explanations given to us, the terms and conditions of the guarantees
are not, prima facie, prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
records examined by us, terms loans obtained for financing real estate
projects, in our opinion, on an overall basis, were used for the real
estate projects.
17. On the basis of an overall examination of the Balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long term investments.
18. The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 001297N)
(Jitender Dhingra)
Place : New Delhi Partner
Date : 28th May, 2014 Membership No. 90217
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying fnancial statements of Ansal Housing
and Construction Limited ("the Company"), which comprise the Balance
Sheet as at 31 March, 2013, the Statement of Proft and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
signifcant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
fnancial statements that give a true and fair view of the fnancial
position, fnancial performance and cash fows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 ("the Act") and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal
controls relevant to the preparation and presentation of the fnancial
statements that give a true and fair view and are free from material
misstatements, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these fnancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fnancial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the fnancial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fnancial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal controls relevant to
the Company''s preparation and fair presentation of the fnancial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the efectiveness of the Company''s internal control. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
fnancial statements.
We believe that the audit evidence we have obtained is sufcient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid fnancial 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:
a) in the case of the Balance Sheet, of the state of afairs of the
Company as at 31 March, 2013;
b) in the case of the Statement of Proft and Loss, of the proft of the
Company for the year ended on that date and
c) in the case of the Cash Flow Statement, of the cash fows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specifed in
paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we 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, the Statement of Proft 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 Balance Sheet, the Statement of Proft and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
e) On the basis of the written representations received from the
directors as on 31 March, 2013 taken on record by the Board of
Directors, none of the directors is disqualifed as on 31 March, 2013
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the Financial Statements of the Company and
taking into consideration the information and explanations given to us
and the books and accounts and other records examined by us in the
normal course of audit, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fxed
assets.
b) As explained to us, the fxed assets are physically verifed by the
management in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such physical
verifcation.
c) The Company has not disposed of a substantial part of the fxed
assets during the year and hence the going concern assumption is not
afected.
2. a) As per information and explanations given to us, the inventory
of building materials, stores and spares, restaurant''s provisions,
beverages etc. and fats/shops/ houses etc. at major locations has been
physically verifed during the year by the management. In our opinion,
the frequency of verifcation is reasonable. According to the
information and explanations given to us, keeping in view the nature of
the operations of the Company, inventory of work-in-progress can not be
physically verifed.
b) In our opinion and according to the explanations given to us, the
procedures of physical verifcation of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verifcation of inventory as compared to the book records.
3. a) The Company has granted unsecured interest free loan to a wholly
owned subsidiary company. The maximum amount involved during the year
and the year end balance of loan was Rs. 500 lacs.
b) The loan is interest free being given to a wholly owned subsidiary.
c) In respect of loan given to the wholly owned subsidiary, there is no
stipulation regarding repayment.
d) The Company has taken unsecured loan from two companies covered in
the register maintained under section 301 of the Companies Act, 1956
during the year. The maximum amount of loan during the year and the
year end balance was Rs. 1800 lacs.
e) In our opinion, the rate of interest and other terms and conditions
of such deposits are not, prima facie, prejudicial to the interest of
the Company.
f) In respect of loans taken by the Company, payment of interest has
been regular. The principal amount has not become due for payment
during the year.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fxed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures.
5. In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements that are needed to
be entered in the register maintained in pursuance of section 301 of
the Companies Act, 1956.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies Acceptance of Deposits Rules, 1975. According to
the information and explanations given to us, in this regard, no order
under the aforesaid sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. As per information and explanations given to us and as broadly
reviewed by us, the Company has maintained the cost records pursuant to
the Companies (Cost Accounting Record) Rules 2011 prescribed by the
Central Government under section 209 (1) (d) of the Companies Act,
1956. We have, however, not made a detailed examination of the records
with a view to determine whether they are accurate or complete.
9. a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues relating to provident fund, investor education and
protection fund, employees state insurance, income-tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues, wherever applicable. However, there were delays in
deposit of service tax, sales tax and advance tax during the year.
Other than for undisputed amount of service tax of Rs. 5.80 lacs, there
are no undisputed amounts payable in respect of these dues which have
remained outstanding at 31st March, 2013 for a period of more than six
months from the date they became payable.
10. The Company does not have any accumulated losses and has not
incurred cash losses during the fnancial year covered by our audit and
the immediately preceding fnancial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in the repayment of dues to banks and fnancial institutions covered by
the Order during the year.
12. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual beneft fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. The Company has given guarantees for loans taken by its wholly
owned subsidiaries and other companies from banks or fnancial
institutions. In our opinion and based on the information and
explanations given to us, the terms and conditions of the guarantees
are not, prima facie, prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
records examined by us, terms loans obtained for fnancing real estate
projects, in our opinion, on an overall basis, were used for the real
estate projects.
17. On the basis of an overall examination of the Balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long term investments.
18. The Company has not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported
during the course of our audit.
For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 001297N)
(Jitender Dhingra)
Place : New Delhi Partner
Date : 29th May, 2013 Membership No. 90217
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s Ansal Housing &
Construction Ltd. ('the Company') as at 31st March 2012 and also the
Statement of Profit and Loss and the Cash Flow Statement of the Company
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 financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidences 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 by (Amendment) Order, 2004 issued by the Central Government of
India in terms of sub-section (4A) of section 227 of 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:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of the
books.
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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with
accounting standards referred to in sub section (3C) of Section 211 of
the Companies Act, 1956.
e) On the basis of the written representations received from the
directors as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with accounting
policies and other notes, give the information required by the
Companies Act, 1956, in the manner so required and give true and fair
view in conformity with the accounting principles generally accepted in
India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012 and ;
ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date.
iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
(Referred to in Paragraph 3 thereof)
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the Financial Statements of the Company and
taking into consideration the information and explanations given to us
and the books and accounts and other records examined by us in the
normal course of audit, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets are physically verified by the
management in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
c) The Company has not disposed off a substantial part of the fixed
assets during the year and hence the going concern assumption is not
affected.
2. a) As per information and explanations given to us, the inventory
of building materials, stores and spares, restaurant's provisions,
beverages etc. and flats/shops/ houses etc. at major locations has been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable. According to the
information and explanations given to us, keeping in view the nature of
the operations of the Company, inventory of work-in-progress can not be
physically verified.
b) In our opinion and according to the explanations given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. a) The Company has granted unsecured interest free loan to a wholly
owned subsidiary company. The maximum amount involved during the year
and year end balance of loan was Rs. 500 lacs.
b) The loan is interest free being given to a wholly owned subsidiary.
c) In respect of loan given to the wholly owned subsidiary, there is no
stipulation regarding repayment.
d) The Company has not taken any loans, secured or unsecured, from
companies firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fixed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures.
5. a) According to information and explanation given to us, we are of
the opinion that the transactions that need to be entered into the
register in pursuance of section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register in pursuance of section 301 of
the Companies Act, 1956 and exceeding the value of Rs. five lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time where such market prices are available.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies Acceptance of Deposits Rules, 1975. According to
the information and explanations given to us, in this regard, no order
under the aforesaid sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. As per information and explanations given to us, the Central
Government has during the year issued the Companies (Cost Accounting
Record) Rules 2011 under section 209 (1) (d) of the Companies Act, 1956
prescribing for maintenance of cost records with regard to the real
estate development activities of the Company w.e.f. 1st April 2011. We
have been informed that the Company is taking necessary steps to comply
with the said Rules.
9. a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues relating to provident fund, investor education and
protection fund, employees state insurance, income-tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues, wherever applicable. However, in some cases there were
delays in deposit of service tax on construction services and sales tax
during the year. No undisputed amounts payable i n respect of these
dues were outstanding at the year end for a period of more than six
months from the date they became payable.
b) According to the information and explanations given to us and the
records of the Company examined by us, the disputed amounts payable in
respect of income-tax, sales tax, wealth tax, custom tax and excise
duty / cess not deposited with the appropriate authorities are as
follows:
Nature of
dues Amount Period to
which the Forum where
dispute is pending
(Rs. In lacs) amount relates
Wealth Tax 0.49 Assessment Year
2004-05 CWT (Appeals)-I,
New Delhi
Sales Tax 159.38 Assessment Year -
2003-04 Tribunal, Commercial
Tax, Ghaziabad.
to 2006-07
Sales Tax 47.77 Assessment Year -
2007-08 Additional Commiss
ioner of Trade Tax,
Ghaziabad.
Sales Tax 39.70 Assessment Year
2010-11 Deputy Commissioner
of Trade Tax,
Ghaziabad.
Provident
Fund 66.78 June 1994 to
March 2006 Delhi High Court
Employee
State
Insurance 0.66 June 1998 to
April 1999 Regional Director,
ESIC Corporation,
New Delhi
Service Tax 271.31 October 2003 to
March Custom, Excise and
Service Tax Appellate
Tribunal,
2010 New Delhi
10. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, in a few cases during the
year there have been delays in repayment of dues to banks amounting to
Rs. 515.69 lacs ranging from 1 day to 22 days. The delays pertain to
repayments due upto September 2011 which have been regularized by the
Company by October 2011. Except for above, the Company has not
defaulted in the repayment of dues to banks and financial institutions
covered by the Order during the year.
12. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. The provisions of any special statute applicable to chit fund/
nidhi / mutual benefit fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. The Company has given guarantees for loans taken by its wholly
owned subsidiaries and other companies from banks or financial
institutions. In our opinion and based on the information and
explanations given to us, the terms and conditions of the guarantees
are not, prima facie, prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
records examined by us, terms loans obtained for financing real estate
projects, in our opinion, on an overall basis, were used for the real
estate projects.
17. On the basis of an overall examination of the Balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long term investments.
18. The Company has made preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
section 301 of the Companies Act, 1956. In our opinion and according to
the information and explanations given to us, the price at which shares
have been issued to these parties is not prejudicial to the interest of
the Company.
19. The Company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported
during the course of our audit.
For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 001297N)
Place : New Delhi (Jitender Dhingra)
Date : 26th May, 2012 Partner
Membership No. 90217
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s Ansal Housing &
Construction Ltd. as at 31st March 2011 and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the CompanyÃs management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidences 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 (AuditorÃs Report) Order, 2003 as
amended by (Amendment) Order, 2004 issued by the Central Government of
India in terms of sub-section (4A) of section 227 of 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. Without qualifying our opinion, we draw attention to Note No. 5 in
Schedule 15 to the financial statements. The Company has advanced Rs.
751.02 lacs to certain parties /collaborators which have been accounted
for as Ãadvances for landÃ. In the absence of underlying contract /
agreement in this regard, we have relied on the managementÃs
representation that the advances are good and recoverable.
5. Further to our comments in the Annexure referred to in paragraph 3
and 4 above, we report that :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of the
books.
c) The Balance Sheet, Profit and 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 and Loss Account and Cash
Flow Statement dealt with by this report comply with accounting
standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956.
e) On the basis of the written representations received from the
directors as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2011 from being appointed as a director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with accounting
policies and other notes, give the information required by the
Companies Act, 1956, in the manner so required and give true and fair
view in conformity with the accounting principles generally accepted in
India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2011 and ;
ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors' Report
(Referred to in Paragraph 3 thereof)
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the Financial Statements of the Company and
taking into consideration the information and explanations given to us
and the books and accounts and other records examined by us in the
normal course of audit, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets are physically verified by the
management in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
c) The Company has not disposed of a substantial part of the fixed
assets during the year and hence the going concern assumption is not
affected.
2. a) As per information and explanations given to us, the inventory
of building materials, stores and spares, restaurant's provisions,
beverages etc. and fats/shops/ houses etc. at major locations has been
physically verified during the year by the management. In our opinion,
the frequency of verification is reasonable. According to the
information and explanations given to us, keeping in view the nature of
the operations of the Company, inventory of work-in-progress can not be
physically verified.
b) In our opinion and according to the explanations given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3. a) The Company has granted unsecured interest free loan to a wholly
owned subsidiary company. The maximum amount involved during the year
and year end balance of loan was Rs. 500 lacs.
b) The loan is interest free being given to a wholly owned subsidiary.
c) In respect of loan given to the wholly owned subsidiary, there is no
stipulation regarding repayment.
d) The Company has not taken any loans, secured or unsecured, from
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fixed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures.
5. a) According to information and explanation given to us, we are of
the opinion that the transactions that need to be entered into the
register in pursuance of section 301 of the Companies Act, 1956 have
been so entered. b) In our opinion and according to the information
and explanations given to us, the transactions made in pursuance of
contracts or arrangements entered into the register in pursuance of
section 301 of the Companies Act, 1956 and exceeding the value of Rs.
five lakhs in respect of each party during the year have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time where such market prices are available.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies Acceptance of Deposits Rules, 1975. According to
the information and explanations given to us, in this regard, no order
under the aforesaid sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government of India has not prescribed the maintenance
of cost records U/s 209 (1) (d) of the Companies Act, 1956 for any of
the products of the Company.
9. a) According to the information and explanations given to us and
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues relating to provident fund, investor education and
protection fund, employees state insurance, income-tax, sales tax,
wealth tax, service tax, custom duty, excise duty, cess and other
statutory dues, wherever applicable. However, in the case of service
tax payable on construction services levied w.e.f. 1st July, 2010 vide
amendment in Finance Act, 2010, the same was deposited in the month of
March 2011 as the matter was pending in High Court about constitutional
validity of the amendment. No undisputed amounts payable in respect of
these dues were outstanding at the year end for a period of more than
six months from the date they became payable.
b) According to the information and explanations given to us and the
records of the Company examined by us, the disputed amounts payable in
respect of income-tax, sales tax, wealth tax, custom tax and excise
duty / cess not deposited with the appropriate authorities are as
follows:
Nature of dues Amount Period to which the Forum where
(Rs.In lacs) relates dispute is
pending
Wealth Tax 0.49 Assessment Year CWT (Appeals)-I,
2004-05 New Delhi
Sales Tax 20.37 Assessment Year Tribunal,
31.50 - 2003-04 Commercial Tax,
63.64 - 2004-05 Ghaziabad.
- 2005-06
Sales Tax 43.87 Assessment Year Deputy
39.70 -2006-07 Commissioner of
-2010-11 Trade Tax,
Ghaziabad.
Sales Tax 638.70 Assessment Year Joint
2007-08 Commissioner of
Trade Tax,
Ghaziabad.
Provident Fund 66.78 June 1994 to Employees
March 2006 Provident Fund
Appellate
Tribunal
Employee State 2.97 June 1998 to District Courts,
Insurance April 1999 Tees Hazari,
Delhi
Service Tax 271.31 October 2003 to *
March 2010
* As informed to us, the Company is in the process of fling an appeal
against the service tax demand which has been received on 28th April,
2011.
10. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in the repayment of dues to financial institutions and banks during the
year.
12. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual benefit fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. The Company has given guarantees for loans taken by its wholly
owned subsidiaries and other companies from banks or financial
institutions. In our opinion and based on the information and
explanations given to us, the terms and conditions of the guarantees
are not, prima facie, prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
records examined by us, terms loans obtained for financing real estate
projects, in our opinion, on an overall basis, were used for the real
estate projects.
17. On the basis of an overall examination of the Balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long term invest- ments.
18. The Company has made preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
section 301 of the Companies Act, 1956. In our opinion and according to
the information and explanations given to us, the price at which shares
have been issued to these parties is not prejudicial to the interest of
the Company.
19. The Company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported
during the course of our audit.
For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 001297N)
(Jitender Dhingra)
Partner
Membership No. 90217
Place : New Delhi
Date : 30th May, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s Ansal Housing &
Construction Ltd. as at 31st March 2010 and also the Proft and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These fnancial statements are the responsibility of
the CompanyÃs management. Our responsibility is to express an opinion
on these fnancial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
fnancial statements are free of material misstatement. An audit
includes examining, on a test basis, evidences supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and signifcant estimates made
by management as well as evaluating the overall fnancial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (AuditorÃs Report) Order, 2003 as
amended by (Amendment) Order, 2004 issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Companies Act,
1956, we enclose in the Annexure, a statement on the matters specifed
in paragraphs 4 and 5 of the said order.
4. Without qualifying our opinion, we have to state that:
a) The Company has advanced Rs. 820.97 lacs to certain
parties/collaborators which have been accounted for as Ãadvances for
landÃ. In the absence of underlying contracts/agreements in this
regard, we have relied on the managementÃs representation that the
advances are good and recoverable (Note No. 4 of Schedule 15).
b) Commission payable to non-executive directors amounting to Rs. 10 lacs
is subject to approval by the Central Government (Note No. 12(b) of
Schedule 15).
5. Further to our comments in the Annexure referred to in paragraph 3
and 4 above, we report that :
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of the
books.
c) The Balance Sheet, Proft and 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, Proft and Loss Account and Cash
Flow Statement dealt with by this report comply with accounting
standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956.
e) On the basis of the written representations received from the
directors as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualifed as on
31st March 2010 from being appointed as a director in terms of clause
(g) of sub- section (1) of section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the accounts read with accounting
policies and other notes, give the information required by the
Companies Act, 1956, in the manner so required and give true and fair
view in conformity with the accounting principles generally accepted in
India:
i) in the case of the Balance Sheet, of the state of afairs of the
Company as at 31st March, 2010 and ;
ii) in the case of the Proft and Loss Account, of the proft for the
year ended on that date.
iii) in the case of the cash fow statement, of the cash fows for the
year ended on that date.
Annexure to the Auditors Report (Referred to in Paragraph 3 Thereof)
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the Financial Statements of the Company and
taking into consideration the information and explanations given to us
and the books and accounts and other records examined by us in the
normal course of audit, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fxed
assets.
b) As explained to us, the fxed assets are physically verifed by the
management in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such physical
verifcation.
c) The Company has not disposed of a substantial part of the fxed
assets during the year and hence the going concern assumption is not
afected.
2. a) As per information and explanations given to us, the inventory
of building materials, stores and spares, restaurantÃs provisions,
beverages etc. and fats/shops/ houses etc. at major locations has been
physically verifed during the year by the management. In our opinion,
the frequency of verifcation is reasonable. According to the
information and explanations given to us, keeping in view the nature of
the operations of the Company, inventory of work-in-progress can not be
physically verifed.
b) In our opinion and according to the explanations given to us, the
procedures of physical verifcation of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company has maintained proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verifcation of inventory as compared to the book records.
3. a) The Company has granted unsecured interest free loan to a wholly
owned subsidiary company. The maximum amount involved during the year
and year end balance of loan was Rs. 500 lacs.
b) The loan is interest free being given to a wholly owned subsidiary.
c) In respect of loan given to the wholly owned subsidiary, there is no
stipulation regarding repayment.
d) The Company has not taken any loans, secured or unsecured, from
companies firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fxed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures.
5. a) According to information and explanation given to us, we are of
the opinion that the transactions that need to be entered into the
register in pursuance of section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered into the register in pursuance of section 301 of
the Companies Act, 1956 and exceeding the value of Rs. fve lakhs in
respect of each party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies Acceptance of Deposits Rules, 1975. According to
the information and explanations given to us, in this regard, no order
under the aforesaid sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government of India has not prescribed the maintenance
of cost records U/s 209 (1) (d) of the Companies Act, 1956 for any of
the products of the Company.
9. a) According to the information and explanations given to us, and
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing with appropriate authorities statutory
dues including provident fund, investor education and protection fund,
employees state insurance, income-tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other statutory dues, wherever
applicable.
b) According to the information and explanations given to us and the
records of the Company examined by us, the disputed amounts payable in
respect of income-tax, sales tax, wealth tax, custom tax and excise
duty/cess not deposited with the appropriate authorities are as
follows:
Nature of dues Amount Period to which
the amount Forum where dispute is
pending
(Rs. In
lacs) relates
Assessment year
Wealth Tax 0.49 2004-05 CWT (Appeals)-I, New Delhi.
Sales Tax 12.38 2003-04 and Tribunal, Commercial
Tax, Ghaziabad.
31.50 2004-05
Provident Fund 66.78* June 1994 to
March 2006 Employees Provident Fund
Appellate Tribunal
Employee State
Insurance 2.97 June 1998 to
April 1999 District Courts,
Tees Hazari, Delhi
* In respect of provident fund dues, the company has paid Rs. 16.69 lacs
against the above demand.
10. The Company does not have any accumulated losses and has not
incurred cash losses during the fnancial year covered by our audit and
the immediately preceding fnancial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, in a few cases during the
year there have been delays in repayment of dues to banks amounting to
Rs. 600 lacs ranging from 15 days to 112 days and to fnancial
institutions amounting to Rs. 600 lacs ranging from 47days to 60 days.
The defaults pertain to repayments due upto 15.8.2009 which have been
regularized by the Company by October, 2009.
12. According to the information and explanation given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures, and other securities.
13. The provisions of any special statute applicable to chit fund /
nidhi / mutual beneft fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and based on the information and explanations given
to us, the company has not given any guarantee for loans taken by
others except for its wholly owned subsidiary from banks or fnancial
institutions during the year.
16. According to the information and explanations given to us and the
records examined by us, terms loans obtained for fnancing real estate
projects, in our opinion, on an overall basis, were used for the real
estate projects.
17. On the basis of an overall examination of the Balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long term investments.
18. The Company has made preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
section 301 of the Companies Act, 1956. In our opinion and according to
the information and explanations given to us, the price at which shares
have been issued to these parties is not prejudicial to the interest of
the Company.
19. The Company has not issued any debentures during the year.
20. The company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported
during the course of our audit.
For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 1297N)
Place : New Delhi
Date : 31st May, 2010
(Jitender Dhingra)
Partner
Membership No. 90217