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Ansal Housing & Construction Ltd.

BSE: 507828 Sector: Infrastructure
NSE: ANSALHSG ISIN Code: INE880B01015
BSE LIVE 15:46 | 24 May 26.75 -1.20
(-4.29%)
OPEN

28.05

HIGH

28.05

LOW

26.40

NSE 15:56 | 24 May 26.80 -1.05
(-3.77%)
OPEN

28.00

HIGH

28.40

LOW

26.50

OPEN 28.05
PREVIOUS CLOSE 27.95
VOLUME 23187
52-Week high 36.00
52-Week low 15.50
P/E 20.27
Mkt Cap.(Rs cr) 159
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 28.05
CLOSE 27.95
VOLUME 23187
52-Week high 36.00
52-Week low 15.50
P/E 20.27
Mkt Cap.(Rs cr) 159
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ansal Housing & Construction Ltd. (ANSALHSG) - Auditors Report

Company auditors report

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 Sheetas at 31st March 2016 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (''the Act") with respect to the preparation andpresentation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating Effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors' Responsibility

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

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas 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 excessremuneration paid to the Chairman and Managing Director of the Company of Rs. 111.79 lacsduring the year 2015-16. The Company has applied to the Central Government under section197(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 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 3 and4 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 bestof 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 bythe 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 Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act.

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating Effectiveness of such controls refer to ourseparate report in ‘Annexure – A’.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements – Refer to Note No. 28.1 to the financialstatements.

ii. As the company follows percentage of completion method of accounting for revenuerecognition from real estate development contracts in a few cases projects may result ina loss in a particular year which are generally set off against Profits in the futureyears. The management has confirmed to us that there are no material foreseeable losses inthe case of long term contracts.

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

For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 001297N)
(Jitender Dhingra)
Place: New Delhi Partner
Date: 30th May 2016 Membership No. 90217

Annexure to the Independent Auditors’ Report

(Referred to in paragraph 1 under the heading ‘Report on Other Legal andRegulatory Requirements’ of our report of even date)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the Financial Statements of the Company and taking into consideration theinformation and explanations given to us and the books and accounts and other recordsexamined by us in the normal course of audit we report that:

1. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us the fixed assets have been physically verified by the managementin accordance with a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets. According to theinformation and explanations given to us no material discrepancies were noticed on suchphysical verification.

c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable propertiesincluded 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 buildingmaterials stores and spares restaurant’s provisions beverages etc. land andflats/shops/houses etc. at major locations has been physically verified during the year bythe management. In our opinion the frequency of verification is reasonable. According tothe information and explanations given to us keeping in view the nature of the operationsof the Company inventory of work-in-progress can not be physically verified. As explainedto 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 firmslimited liability partnerships or other parties covered in the register maintained underSection 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 thereare no loans and securities granted in respect of which provisions of Section 185 and 186of the Companies Act 2013 are applicable. In our opinion and according to the informationand explanations given to us the Company has complied with provisions of section 186 ofthe Companies Act 2013 in respect of guarantees given and investments made during theyear.

5. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of sections 73 to 76 or any other relevantprovisions of the Companies Act 2013 and the rules framed thereunder. According to theinformation and explanations given to us in this regard no order under the aforesaidsections has been passed by the Company Law Board or National Company Law Tribunal orReserve 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 tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. We have however not made a detailedexamination of the same.

7.a) According to the information and explanations given to us and records of theCompany examined by us in our opinion the Company is generally regular in depositingwith appropriate authorities undisputed statutory dues relating to provident fundinvestor education and protection fund employees state insurance income-tax sales taxwealth tax service tax custom duty excise duty cess and other statutory dues whereverapplicable. However there were delays in the deposit of value added tax service taxlabour cess and advance tax during the year. Other than for undisputed amount of valueadded tax of Rs.11.07 lacs and employee state insurance of Rs 0.13 lacs there are noundisputed amounts payable in respect of these dues which have remained outstanding at31st 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 ason 31st March 2016 has not been quantified.

b)According to the information and explanations given to us and the records of theCompany examined by us the disputed amounts payable in respect of income-tax sales taxwealth tax custom tax and excise duty / cess not deposited with the appropriateauthorities 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 andexplanations given to us the Company has not defaulted in the repayment of dues to banksand financial institutions covered by the Order during the year. The Company does not haveany debentures and loan from government.

9. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. According to the informationand explanations given to us and the records examined by us term loans obtained forfinancing real estate projects in our opinion on an overall basis were used for thereal estate projects.

10. According to the information and explanations given to us no fraud by the Companyor on the Company by its Officers or employees has been noticed or reported during theyear.

11. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V to the Companies Act 2013. However in the case ofChairman and Managing Director the remuneration paid during the year 2015-16 is in excessof the limit provided in Section 197 read with Schedule V to the Companies Act 2013 byRs. 111.79 lacs due to inadequacy of the Profit for the year computed in the mannerreferred to in Section 198 of the Companies Act 2013. The Company has applied to theCentral Government under section 197(3) of the Companies Act 2013 for approval of excessremuneration 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 ourexamination of the records of the Company transactions with the related parties are incompliance with Sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year and hence not commented upon.

15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him.

16. According to the information and explanations given to us the provisions ofSection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 001297N)
Place: New Delhi (Jitender Dhingra)
Date: 30th May 2016 Partner
Membership No. 90217

ANNEXURE ‘A’ TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF ANSAL HOUSING AND CONSTRUCTION LIMITED

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

To the Members of Ansal Housing and Construction Limited

We have audited the internal financial controls over financial reporting of AnsalHousing and Construction Limited ("the Company") as of March 31 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating Effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor’s Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under Section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedEffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingEffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating Effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly rEffect thetransactions and dispositions of the assets of the Company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorisations ofmanagement and directors of the Company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of theCompany’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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating Effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India

For Khanna & Annadhanam
Chartered Accountants
(Firm Registration No. 001297N)
Place: New Delhi (Jitender Dhingra)
Date: 30th May 2016 Partner
Membership No. 90217