To the Members of Ansal Properties & Infrastructure Limited Report On theStandalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of AnsalProperties & Infrastructure Limited (the Company) which comprise thebalance sheet as at March 31 2017 the statement profitand loss (including othercomprehensive income) the statement of cash flows and the statement of changes in equityfor the year then ended and a summary of the significant accounting policies and otherexplanatory information (herein after referred to as " Ind AS financialstatements").
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the
Company in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards
(Ind AS) prescribed under Section 133 of the Act read with relevant Rules issuedthereunder.
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error
Our responsibility is to express an opinion on these standalone Ind AS financialstatements based 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditors judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Companys preparation of the standalone Ind AS financial statementsthat give a true and fair view in order to circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Directors as well as evaluating theoverall presentation of the standalone Ind AS 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 Ind AS financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the financial position ofthe Company as at March 31 2017 and its financialperformance including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.
Emphasis of Matter We Draw Attention to: i. Note No. 41 to the standalone financialstatements wherein the Company had claimed a cumulative exemption of Rs.
3448 lakh up to the period ended March 31 2011 continuing up to the end of currentperiod under section 80 IA of the Income Tax Act 1961 being tax profits arising out ofsale of Industrial Park units pending the notification of the same by Central Board ofDirect Taxes (Competent Authority). The Competent Authority rejected the initialapplication against which the Company has filed review petition. The Company has takenopinion from a senior counsel that its review petition satisfies all the conditionsspecified in the said Scheme of Industrial Park under Industrial Park (Amendment) Scheme
2010. No exemption is claimed during the current year as there are no sales ofindustrial park units. ii Note No. 42 to the standalone financial statements wherein theCompany is carrying project inventory of Rs.11455 lacs for one of its Group Housingprojects. The Company had applied to the Authority for developing the project on the basisof revised Scheme announced by the Authority for which approval has been receivedenvisaging developing the project on a smaller piece of land equivalent to the amount paidand surrender balance project land subject to certain conditions. Pending final decisionof the Authority in the matter and fulfillment of conditions precedent the management isof the view that there is no impairment in the value of land/ project and we have reliedon management contention. iii. Note No. 55 to the standalone financial statements whereinthe Company Pursuant to Orders of the Company Law Board (CLB) dated the December 30 2014and April 28 2016 the Company was required to refund all its public deposits as per theschedule. As on March 31 2017 overdue amount of public deposits including interestaggregating to Rs. 8505 lakh is outstanding. The Company has filed fresh applicationbefore National Company Law Tribunal North Delhi Bench giving schedule of payment offixed deposits for which hearing is fixed for July 13 2017. Our opinion is not qualifiedin respect of above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India terms of section 143(11) of theAct we give in the Annexure A a statement on the matters specified paragraph 3 and 4 ofthe 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 law have been kept by theCompany so far as it appears from our examination of those books;
c) The balance sheet the statement of profit and loss (including other comprehensiveincome) the statement of cash flows and the statement of changes in equity dealt with bythis Report are in agreement with the books of account;
d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with relevant Rules issuedthereunder;
e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164 (2) of theAct;
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 B"; and
g) With respect to the other matters to be included in the Auditors 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 litigation on its financial positionas referred to in Note 39 to the standalone financial statements.
ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.
iv. The Company has provided requisite disclosures in note 67 to these standalone IndAS financial statements as to the holding of Specified Bank Notes on November 08 2016 andDecember 30 2016 as well as dealing in Specified Bank Notes during the period fromNovember 08 2016 to December 30 2016. Based on audit procedure and relying on themanagement representation regarding the holding and nature of cash transactions includingSpecified Bank Notes we report that these disclosures are in accordance with the books ofaccounts maintained by the Company and as produced to us by the management.
| ||For S. S. KOTHARI MEHTA & Co. |
| ||Chartered Accountants |
| ||FRN 000756N |
| ||Sunil Wahal |
|Date : May 29 2017 ||Partner |
|Place: New Delhi ||Membership No. 087294 |
Annexure A to the Independent Auditors Report to the Members of Ansal Properties& Infrastructure Limited dated May 29 2017.
Report on the matters specified in paragraph 3 of the Companies (Auditors Report)Order 2016 ("the Order) issued by the Central Government of India in terms ofsection 143(11) of the Companies Act 2013 ("the Act") as referred to inparagraph 1 of Report on Other Legal and Regulatory Requirements section.
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a phased program of physical verification of its fixed assetswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. All the fixed assets identified during the year for verificationhave not been physically verifiedby the management. However discrepancies noticed duringphysical verification have been recorded and accounted for in the books of account to theextent of verification carried out.
(c) In our opinion and according to the information and explanations given to us thetitle deeds of immovable properties are held in the name of the Company. ii. TheManagement has conducted physical verification of inventory at reasonable intervals duringthe year and no material discrepancies were noticed on such physical verification.
iii. (a) The Company has not granted any loans secured or unsecured to companiesfirms or other parties covered in the register maintained under section 189 of the Act.Accordingly clauses 3(iii) (a) & (b) of the Order are not applicable.
(b) Since there are no such loans the comments regarding repayment of the principalamount & interest due thereon and overdue amounts are not required.
iv. In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Act in respect of loans to directors includingentities in which they are interested and in respect of loans and advances giveninvestments made and guarantees and securities given have been complied with by theCompany.
v. During the previous year the Company had filed with Company Law Board (CLB) ascheme for extension of time for repayment of its fixed deposits. CLB had approvedextension of time for repayment of fixed deposits with certain conditions vide Order dated30.12.2014 and 28.04.2016 under sections 74(2) of the Act. The Company is in process ofcomplying with above CLB Orders. The Company has filed fresh application before NationalCompany Law Tribunal North Delhi Bench giving schedule of payment of fixed deposits forwhich hearing is fixed for July 13 2017.Further provisions of section 73 to 76 or anyother relevant provisions of the Act whichever is applicable have been complied by theCompany.
vi. The Central Government has prescribed for maintenance of Cost Accounting recordspursuant to the requirements of sub-section (1) of section 148 of the Act with regard tothe activities of the Company. The Company is in the process of making and maintainingthose records. However we are not required to carry out a detailed examination of thesame.
vii. a. According to the records of the Company examined by us and the information andexplanations given to us the Company is generally regular in depositing its undisputedstatutory dues including Provident Fund Investor Education and Protection Fund EmployeesState Insurance Sales tax Wealth-tax Custom Duty Excise Duty Cess and other materialstatutory dues wherever applicable with the appropriate authorities during the yearexcept Tax Deducted at Source wherein there are long delays in depositing the amount withthe concerned authorities. However there are no such undisputed statutory dues payablefor a period of more than six months from the date they became payable as at March 312017 except income tax payable of Rs. 954 lakh.
b. According to the information and explanations given to us and as per the books andrecords examined by us details of dues of Sales Tax Wealth Tax Customs duty Exciseduty and Service tax which have not been deposited on account of any dispute and the forumwhere the dispute is pending are as under:
|S. No. ||Name of Statute ||Nature of Dues ||Amount (Rs.in lacs) ||Assessment Year ||Forum where pending |
|1. ||Sales Tax Act ||Delhi Sales Tax ||4.47 ||1999-00 ||Assessing Authority Special Zone Delhi |
|2. ||Sales Tax Act ||UP Sales Tax ||0.29 ||2006-07 ||Additional Commissioner (Appeal) Ghaziabad |
|3. ||Sales Tax Act ||UP Sales Tax ||1.08 ||2008-09 ||Commercial Tax Tribunal Ghaziabad |
|4. ||Sales Tax Act ||UP Sales Tax ||220.39 ||2012-13 ||Additional Commissioner (Appeal) Ghaziabad |
|5. ||Local Area ||Local Area ||8.73 ||2003-04 ||Joint Excise & Taxation |
| ||Development Tax Act ||Development Tax Act || || ||Commissioner (Appeal) Gurgaon |
|6. ||UP Trade Tax Act ||UP Sales Tax ||0.06 ||2007-08 ||Additional Commissioner (Appeal) Ghaziabad |
|7. ||UP Trade Tax Act ||UP Sales Tax ||8.00 ||2011-12 ||Commercial Tax Tribunal Ghaziabad |
|8. ||UP Trade Tax Act ||Work Contract Tax ||61.64 ||2009-10 ||Commercial Tax Tribunal Ghaziabad |
|9. ||Sales Tax Act ||Haryana Sales Tax ||50.28 ||2008-09 ||Deputy Excise & Taxation Commissioner Cum Revisional Authority Gurgaon Haryana |
|10. ||Sales Tax Act ||Haryana Sales Tax ||172.42 ||2009-10 ||Deputy Excise & Taxation Commissioner Cum Revisional Authority Gurgaon Haryana |
|11. ||Sales Tax Act ||Haryana Sales Tax ||49.28 ||2010-11 ||Deputy Excise & Taxation Commissioner Cum Revisional Authority Gurgaon Haryana |
|12. ||Income Tax Act 1961 ||Income Tax ||2858.89 ||2010-11 ||Commissioner of Income Tax New Delhi |
|113. ||Income Tax Act 1961 ||Income Tax ||675.68 ||2011-12 ||Deputy Commissioner of Income Tax |
|14. ||Income Tax Act 1961 ||Income Tax ||313.03 ||2012-13 ||ITAT New Delhi |
|15. ||Income Tax Act 1961 ||Income Tax ||594.45 ||2013-14 ||ITAT New Delhi |
|16. ||Income Tax Act 1961 ||Income Tax ||1240.00 ||1988-89 to 2014-15 ||Supreme Court |
|17. ||Income Tax Act 1961 ||Income Tax ||1070.94 ||2014-15 ||ITAT New Delhi |
|18. ||Wealth Tax Act 1957 ||Wealth Tax ||0.45 ||1992-93 ||Asstt. Commissioner of Wealth Tax New Delhi |
|19. ||Wealth Tax Act Act 1957 ||Wealth Tax ||0.50 ||1997-98 ||Deputy Commissioner of Wealth Tax New Delhi |
|20. ||Wealth Tax Act 1957 ||Wealth Tax ||0.96 ||2000-01 ||Deputy Commissioner of Wealth Tax New Delhi |
viii. On the basis of the audit procedures performed by us the information &explanations furnished and representations made by the management the Company has delaysin repayment of dues including interest to banks and financial institutions. While suchdelays were there on different occasions during the year the relevant amounts have beenpaid to the respective banks and financial institutions and the delay events have beenmade good such delays which have remained outstanding at the year-end are enumerated innote 43 to the financial statements. There are no outstanding debentures at year end.
ix. In our opinion and according to the information and explanations given to us theCompany has not raised any money way of initial public offer / further public offer.Further the term loans raised during the year by the Company have been generally appliedfor the purpose for which the said loans were obtained and for overall project relatedactivity in general.
x. In our opinion and according to the information and explanations given to us wereport that no fraud by the Company or on the Company by the officers and employees of theCompany has been noticed or reported during the year. xi. In our opinion and according tothe information and explanations given to us managerial remuneration has been paid /provided in accordance with the requisite approvals mandated by the provisions of section197 of the Act read with Schedule V to the Act.
xii. The Company is not a Nidhi Company. Therefore the provisions of clause 3(xii) ofthe Order are not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to usduring the course of audit transactions with the related parties are in compliance withsection 177 and section 188 of the Act where applicable and the details have beendisclosed in the notes to the financial statements as required by the applicable IndianAccounting Standards.
xiv. According to the information and explanations given to us and on an overallexamination of the books of account the Company has not made any preferential allotmentor private placement of shares or fully or partly convertible debentures during the yearunder audit and hence not commented upon.
xv. In our opinion and according to the information and explanations given to us theCompany has not entered into any non-cash transactions with directors or persons connectedwith him.
xvi. 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 S. S. KOTHARI MEHTA & Co. |
| ||Chartered Accountants |
| ||FRN 000756N |
| ||Sunil Wahal |
| ||Partner |
|Date : May 29 2017 ||Membership No. 087294 |
|Place: New Delhi || |
Annexure B to the Independent Auditors Report to the Members of Ansal Properties& Infrastructure Limited dated May 29 2017
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) ofReport on Other Legal and Regulatory Requirements section
We have audited the internal financial controls over financial reporting of AnsalProperties & Infrastructure Limited ("the Company") as of 31 March 2017in conjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial internal control over financial reporting criteria established by the Companycontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India". Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientadherence to companys policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial under the Act.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial audit.
We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Act to the extent applicable to an audit of internal financial controls Controlsand both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established effectively 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 ofinternal financial reporting included obtaining an understanding ofinternal financial controls controlsover over financial reporting assessing the risk thata material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditors judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Companys internal financial controls system over financialreporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financialreportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A companys internal financial control overfinancialreporting includes those policies and procedures that: a) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; b) 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 authorizations ofmanagement and directors of the company; and c) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompanys 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 the degree of compliance with thepolicies or procedures may deteriorate.
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 internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.
| ||For S.S.KOTHARI MEHTA & Co. |
| ||Chartered Accountants |
| ||Firms Registration No. 000756N |
| ||SUNIL WAHAL |
| ||Partner |
| ||Membership No. 087294 |
|Place: New Delhi || |
|Date: May 29 2017 || |