You are here » Home » Companies » Company Overview » Ganesh Housing Corporation Ltd

Ganesh Housing Corporation Ltd.

BSE: 526367 Sector: Infrastructure
BSE 00:00 | 03 Mar 57.50 -3.00






NSE 00:00 | 03 Mar 57.55 -3.00






OPEN 61.90
VOLUME 26999
52-Week high 62.05
52-Week low 17.50
Mkt Cap.(Rs cr) 283
Buy Price 57.50
Buy Qty 298.00
Sell Price 57.50
Sell Qty 1000.00
OPEN 61.90
CLOSE 60.50
VOLUME 26999
52-Week high 62.05
52-Week low 17.50
Mkt Cap.(Rs cr) 283
Buy Price 57.50
Buy Qty 298.00
Sell Price 57.50
Sell Qty 1000.00

Ganesh Housing Corporation Ltd. (GANESHHOUC) - Auditors Report

Company auditors report



We have audited the accompanying standalone financial statements ofGANESH HOUSING CORPORATION LIMITED ("the company") which comprise the BalanceSheet as at 31st March 2019 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 significant accounting policies and otherexplanatory information (hereinafter referred to as "Standalone financialstatement").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 (the "Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2019and its profit (including other comprehensive income) changes in equity and its cashflows for the year ended on that date.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under Section 143(10) of the Act. Our responsibilities under those SAs arefurther described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters (‘KAM') are those matters that in ourprofessional judgment were of most significance in our audit of the standalone financialstatements of the current period. These matters were addressed in the context of our auditof the standalone financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. We have determined the matterdescribed below to be the key audit matters to be communicated in our report.

The key audit matters How our audit addressed the key audit matter
Investment in Subsidiaries and business Advances to Subsidiaries & group companies (refer to note 3 11 and 45 to the standalone financial statements)
The carrying amount of the investments in subsidiaries represents 17.13% and the business advances & other advances to subsidiaries group companies & others represents 48.16% of the Company's total assets respectively. Recoverability of investment in subsidiaries: Our audit procedures included:
Recoverability of investment in subsidiaries Comparing the carrying amount of investments with the relevant subsidiaries balance sheet to identify whether their net assets being an approximation of
The Company has investments in subsidiaries which are considered to be associated with significant risk in respect of valuation of such investments. These investments are carried at cost less any diminution in value of such investments if any. The investments are reviewed for impairment at each reporting date. This assessment is based on the value of net assets of the real estate projects in these underlying entities which involve significant estimates and judgment due to the inherent uncertainty involved in forecasting future cash flows as well as estimating market value of assets. their minimum recoverable amount were in excess of their carrying amount and assessing whether those subsidiaries have historically been profit-making. We also check the market value of their assets;
For the investments where the carrying amount exceeded the net asset value comparing the carrying amount of the investment with the projected profitability based on approved business plans of the subsidiaries;
Testing the assumptions and understanding the cash flows based on our knowledge of the Company and the markets in which the subsidiaries operate; and
In addition considering the materiality of the investments in subsidiaries vis--vis the total assets of the Company this is considered to be significant to our overall audit strategy and planning.
Considering the adequacy of disclosures in respect of the investment in subsidiaries.
The key audit matters Recoverability of business advances to subsidiaries and group companies How our audit addressed the key audit matter Recoverability of business advances to subsidiaries and group companies:
The Company has extended business advances to subsidiaries & group companies that are assessed for recoverability at Our audit procedures included:
each period end. The company has given total loans & advances of ` 577.64 crores. Out of this ` 287.34 crores are business advances to subsidiaries companies. ` 207.46 crores are given to related parties as business advances and also for purchase of land on behalf of the company. ` 82.84 crores are given to others as business advances for purchase of land on behalf of the company and other miscellaneous advances at 31 March 2019. We reviewed the controls in place for issuing new business advances and evidenced the Board/ CFO approval obtained. We obtained management's assessment of the recoverability of the business advances which includes cash flow projections over the duration of the business advances. These projections are based on underlying property development appraisals;
We tested cash receipts received in relation to these business advances during the year through to bank statement; and
Due to the nature of the business in the real estate industry the Company is exposed to heightened risk in respect of the recoverability of the business advances granted to the aforementioned related parties. There is also judgment involved as to the recoverability of the working capital and project specific business advances which rely on a number of property developments being completed over the time period specified in agreements. We have obtained independent confirmations to ensure completeness and existence of business advances held by related parties as on 31 March 2019.
Evaluation of uncertain tax positions
The Company is subject to periodic challenges by local tax authorities on a range of tax matters during the normal course of business including direct and indirect tax matters. These involve significant management judgment to determine the possible outcome of the uncertain tax positions consequently having an impact on related accounting and disclosures in the financial statements. Our audit procedures include the following substantive procedures:
Obtained understanding of key uncertain tax positions; and
We along with our internal tax experts
Refer Note 47 to the financial statements. Read and analysed select key correspondences external legal opinions/consultations by management for key uncertain tax positions;
Discussed with appropriate senior management and evaluated management's underlying key assumptions in estimating the tax provisions; and
Assessed management's estimate of the possible outcome of the disputed cases.

Other information

The Company's management and Board of Directors are responsiblefor the other information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements andour auditors' report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information we are required to report that fact. We have nothing to report inthis regard.

Management's responsibility for the standalone financialstatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income cashflows and changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder section 133 of the Act read with relevant rules issued there under. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management and Boardof Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.

Board of Directors is also responsible for overseeing theCompany's financial reporting process.

Auditor's responsibilities for the audit of the standalonefinancial statements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

Obtain an understanding of internal control relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under Section143(3) (i) of the Act we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls with reference to standalone financialstatements in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditors' report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant defficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 a statement on the matters specified inparagraphs 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 explanationswhich to the best of our knowledge and beliefs were necessary for the purposes of ouraudit;

b. In our opinion proper books of accounts as required by Law have beenkept by the Company so far as it appears from our examinations of those books;

c. The Balance Sheet Statement of Profit and Loss including OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this report are in agreement with the relevant books of account;

d. In our opinion the aforesaid standalone financial statements complywith the Indian Accounting Standards specified under section 133 of the Act read withrelevant rules issued there under; e. On the basis of written representations receivedfrom the directors as on 31st March 2019 taken on record by the Board of Directors noneof the directors is disqualified as on 31st March 2019 from being appointed as a directorin terms of Section 164(2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in Annexure B.

g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h. With respect to the other matters to be included in theAuditor'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 theexplanations given to us:

i. The company has disclosed the impact of pending litigations as at31st March 2019 on its financial position in its standalone financial statements asreferred to in Note No. 47 [A to F] to the standalone financial statements.

ii. The company did not have any long term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company during the yearended 31st March 2019.

Chartered Accountants
FRN: 142830W
Place: Ahmedabad Proprietor
Date: 30/05/2019 Membership No.: 032812