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Ansal Properties & Infrastructure Ltd.

BSE: 500013 Sector: Infrastructure
NSE: ANSALAPI ISIN Code: INE436A01026
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VOLUME 9614
52-Week high 14.95
52-Week low 3.69
P/E
Mkt Cap.(Rs cr) 83
Buy Price 5.27
Buy Qty 175.00
Sell Price 5.27
Sell Qty 1000.00
OPEN 5.45
CLOSE 5.54
VOLUME 9614
52-Week high 14.95
52-Week low 3.69
P/E
Mkt Cap.(Rs cr) 83
Buy Price 5.27
Buy Qty 175.00
Sell Price 5.27
Sell Qty 1000.00

Ansal Properties & Infrastructure Ltd. (ANSALAPI) - Auditors Report

Company auditors report

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 the balancesheet as at March 31 2018 the statement of profit and loss (including othercomprehensive income) the cash flow statement and the statement of changes in equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information (herein after referred to as "Ind AS financialstatements").

Management's Responsibility for the 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 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 principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with relevant Rules issued thereunder.

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.

Auditor's Responsibility

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 auditor's 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 Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial 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.

Opinion

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 state of affairs of theCompany as at March 31 2018 and its loss (including other comprehensive income) itscash flows and the changes in equity for the year ended on that date.

Emphasis of Matter

We draw attention to:

(i) Note No. 41 to the standalone Ind AS financial statements wherein the Company hadclaimed a cumulative exemption of Rs. 3448 lakhs up to the period ended March 312011continuing up to the end of current period under section 80 IA of the Income Tax Act1961 being tax profits arising out of sale of Industrial Park units pending thenotification of the same

by Central Board of Direct Taxes (Competent Authority). The Competent Authorityrejected the initial application against which the Company has filed review petition. TheCompany has taken opinion from a senior counsel that its review petition satisfies all theconditions specified in the said Scheme of Industrial Park under Industrial Park(Amendment) Scheme 2010. No exemption is claimed during the current year as there are nosales of industrial park units.

(ii) Note No. 64 to the standalone Ind AS financial statements wherein the Company iscarrying project inventory of Rs. 11043 lakhs for one of its Group Housing projects. TheCompany had applied to the Authority for developing the project on the basis of revisedScheme announced by the Authority for which approval has been received envisagingdeveloping the project on a smaller piece of land equivalent to the amount paid andsurrender balance project land subject to certain conditions. Pending final decision ofthe Authority in the matter and fulfillment of conditions precedent the management is ofthe view that there is no impairment in the value of land/ project and we have relied onmanagement contention.

(iii) Note No. 58 to the standalone Ind AS financial statements wherein the Companypursuant to Orders of the Company Law Board {CLB} dated the December 30 2014 and April28 2016 the Company was required to refund all its public deposits as per the schedule.Further as per National Company Law Tribunal Order dated January 13 2017 in response toan application filed by the Company as amended/extended from time to time the Companywas required to repay Rs 400 lakhs per month as per revised schedule. As on March 31 2018an amount of Rs 1530 lakhs is overdue on account of what was payable as per schedule.

(iv) Note No. 45 to the standalone Ind AS financial statements wherein the CompanyPrescribed Norms issued by Reserve Bank of India (RBI) and exercise of powers conferred onthe Bank under Securitization and Reconstruction of Financial Assets and Enforcement ofSecurity Interest Act 2002 (SREAFAESI) two lender banks of the Company have classifiedthe bank accounts of the Company as Non - Performing Assets (NPA) and have demanded theentire amount of Rs. 19246 lakhs due towards the banks outstanding excluding interest andpenal charges. As explained to us the Company is not in agreement with the contention ofthe lender banks and is in discussions with the lender banks to resolve this matter.

Our opinion is not qualified in respect of the above matters.

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 section 143(11) of the Act we givein the Annexure A a statement on the matters specified in the paragraph 3 and 4 of theOrder.

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 standalone Ind AS financial statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with relevantRules issued thereunder;

e) On the basis of the written representations received from the directors as on March31 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 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 B"; and

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 litigation on its financial positionas referred to in Note 39 to the standalone Ind AS financial statements.

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;

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

For S. S. KOTHARI MEHTA & Co.
Chartered Accountants
FRN - 000756N
Sunil Wahal
Date : May 30 2018 Partner
Place: New Delhi Membership No. 087294

Annexure A to the Independent Auditor's Report to the Members of Ansal Properties &Infrastructure Limited dated

May 30 2018 on its Standalone Ind AS Financial Statements.

Report on the matters specified in paragraph 3 of the Companies (Auditor's Report)Order 2016 ("the Order') issued

by the Central Government of India in terms of section 143(11) of the Companies Act2013 ("the Act") as referred to

in paragraph 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 verified by 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. The Management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

iii. The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the Act.Accordingly provisions of clause 3(iii) of the Order are not applicable.

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. In the previous year the Company had filed with Company Law Board (CLB) a schemefor extension of time for repayment of its fixed deposits. CLB had approved extension oftime for repayment of fixed deposits with certain conditions vide Order dated December 302014 and April 28 2016 under sections 74(2) of the Act. As per National Company LawTribunal Order dated January 13 2017 in response to an application filed by the Companyas amended/extended from time to time the Company was required to repay Rs. 400 lakhs permonth as per revised schedule. As on March 31 2018 an amount of Rs 1530 lakhs is overdueon account of what was payable as per schedule. Further provisions of section 73 to 76 orany other relevant provisions of the Act whichever is applicable have been complied withby the Company [refer para (iii) of Emphasis of Matter para of main independent auditorsreport].

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 information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally irregular indepositing the undisputed statutory dues including provident fund employees stateinsurance income tax sales tax service tax goods and service tax (GST) duty ofcustoms duty of excise value added tax cess professional tax and other materialstatutory dues as applicable with the appropriate authorities during the year. Howeverthere are no such undisputed statutory dues payable for a period of more than six monthsfrom the date they became payable as at March 312018 except income tax payable of Rs.1366.92 lakhs Tax Deducted at Source of Rs. 388.03 lakhs and Works contract tax of Rs.62.52 lakhs.

(b) According to the information and explanations given to us and as per the books andrecords examined by us there are no dues of income tax sales tax value added taxservice tax goods and service tax (GST) duty of customs duty of excise which have notbeen deposited with the appropriate authorities 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 1999-2000 Assessing Authority Special Zone Delhi
2 Sales Tax Act UP Sales Tax 0.29 2006-2007 Additional Commissioner (Appeal) Ghaziabad
3 Sales Tax Act UP Sales Tax 1.08 2008-2009 Commercial Tax Tribunal Ghaziabad
4 Local Area Development Tax Act Local Area Development Tax 8.73 2003-2004 Joint Excise & Taxation Commissioner (Appeal) Gurgaon
5 UP Trade Tax Act UP Sales Tax 0.06 2007-2008 Additional Commissioner (Appeal) Ghaziabad
6 UP Trade Tax Act UP Sales Tax 8 2011-2012 Commercial Tax Tribunal Ghaziabad
7 UP Trade Tax Act Work Contract Tax 61.64 2009-2010 Commercial Tax Tribunal Ghaziabad
8 UP Trade Tax Act UP Sales Tax 14.45 2011-2012 Additional Commissioner of Commer cial Tax (Appeal)
9 Income Tax Act 1961 Income Tax 2858.89 2010-2011 Commissioner of Income Tax New Delhi
10 Income Tax Act 1961 Income Tax 675.68 2011-2012 Deputy Commissioner of Income Tax
11 Income Tax Act 1961 Income Tax 313.03 2012-2013 ITAT New Delhi
12 Income Tax Act 1961 Income Tax 594.35 2013-2014 ITAT New Delhi
13 Income Tax Act 1961 Income Tax 1240.00 1988-1989 to 2014-2015 Supreme Court
14 Income Tax Act 1961 Income Tax 1070.94 2014-2015 ITAT New Delhi
15 Wealth Tax Act 1957 Wealth Tax 0.45 1992-1993 Asstt. Commissioner of Wealth Tax New Delhi
16 Wealth Tax Act 1957 Wealth Tax 0.50 1997-1998 Deputy Commissioner of Wealth Tax New Delhi
17 Wealth Tax Act 1957 Wealth Tax 0.96 2000-2001 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. The defaultswhich have remained outstanding at the year-end are given in the table below. There are nooutstanding debentures or Government loans at year end.

a. Defaults in repayment of dues to bank and financial institutions existing as atMarch 31 2018 are as under:

Particulars

Period of Delay

1 - 31 Days 32 - 60 Days 61 - 89 Days 90-182 Days Above 183 Days Total
Term loans from banks
Against principal Amount
Bank of Maharashtra - Lucknow - - - - 317.23 317.23
Bank of Maharashtra - Delhi 604.00 - 604.00 1208.00 858.21 3274.21
Bank Of India - - 100.00 - - 100.00
Indian Bank - - 321.43 321.43 292.86 935.71
Allahabad Bank 937.50 - 937.50 1875.00 866.95 4616.95
Punjab National Bank - - - - - -
Against Interest
Bank of Maharashtra - Lucknow 12.16 4.88 4.88 17.29 59.45 91.77
Bank of Maharashtra - Delhi 109.40 55.61 60.78 176.13 681.74 1090.56
Bank Of India 11.26 - - - - 11.26
Indian Bank 53.07 47.35 51.50 149.04 305.18 606.13
Allahabad Bank 134.86 121.83 134.88 403.05 879.38 1674.00
Punjab National Bank - - - - - -
Term Loans from Financial Institutions
Against Principal Amount
Housing Development Finance Corporation 60.59 45.94 10.37 - - 116.90
DMI Finance Pvt. Ltd. 119.13 - - - - 119.13
Capital India Finance Ltd. 55.56 - - - - 55.56
Against Interest
DMI Finance Pvt. Ltd. 38.98 34.81 31.42 105.20
Capital India Finance Limited 12.99 11.74 33.16 - - 57.89

b. Defaults in repayment of dues of inter Company deposits existing as at March 312018 are as under:

1 - 31 Days 32 - 60 Days

61 - 89 Days

90-182 Days

Above 183 Days Total
Inter Company Deposits
Dalmia Group Holdings - -

-

-

140.00 140.00
Charismatic Infratech Pvt. Ltd. 346.26 -

-

-

- 346.26
Sainik Finance & Industries Ltd. - -

-

-

300.00 300.00
Against Principal
Dalmia Group Holdings 2.25 2.03

2.25

6.67

52.97 66.17
C. R. Foods India Pvt. Ltd. 0.50 0.45

0.50

1.47

- 2.92
Charismatic Infratech Pvt. Ltd. 51.84 96.76 44.33

-

-

192.93
Sainik Finance & Industries Ltd. 3.90 3.52 3.90

11.57

37.43

60.32

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 to the information and explanations given to usmanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 of the Act read with Schedule V to theAct.

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 standalone Ind AS financial statements as required by theapplicable Indian Accounting 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 as referred to in Section 192 of the Act.

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 30 2018 Membership No. 087294
Place: New Delhi

Annexure B to the Independent Auditor's Report to the Members of Ansal Properties &Infrastructure Limited dated May 30 2018 on its standalone Ind AS financial statements

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) of‘Report 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 March 312018in conjunction with our audit of the standalone Ind AS financial statements of the Companyfor the year 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 (ICAI)". Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.

Auditors' 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 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 bothapplicable to an audit of Internal Financial Controls and both issued by The Institute ofChartered Accountants of India (ICAI). Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement 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 Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that:

a) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

b) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

c) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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 2018 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 (ICAI).

For S.S.KOTHARI MEHTA & Co.

Chartered Accountants

Firm's Registration No. 000756N

SUNIL WAHAL

Partner

Membership No. 087294

Place: New Delhi

Date: May 30 2018