To the Members of:GANESH HOUSING CORPORATION LIMITED
Report On The Standalone Financial Statements
We have audited the accompanying standalone financial statements of GANESH HOUSINGCORPORATION LIMITED ("the company") which comprise the Balance Sheet as at 31stMarch 2018 the Statement of Profit and Loss (including other Comprehensive Income) theCash Flow Statement and the statement of changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (hereinafterreferred to as "Standalone financial statement").
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 ofthese standalone financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified undersection 133 of the Act read with relevant rules issued there under. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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.
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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made there under.
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 financial statements are free from material misstatements. An Auditinvolves performing procedures to obtain Audit Evidence about the amounts and Disclosuresin the Standalone Financial Statements. The procedures selected depend on the Auditor'sjudgments including the assessment of risks of material misstatement of the standalonefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal control relevant to company's preparation of the standalonefinancial 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 accounting policies used and the reasonableness of the accountingestimates made by the Company's directors as well as evaluating the overall presentationof the standalone financial statements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone financial statements.
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 2018 and its profit total comprehensive income its cash flows and thechanges in equity for the year ended on that date.
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 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 explanations which to the bestof our knowledge and beliefs were necessary for the purposes of our audit;
b. In our opinion proper books of accounts as required by Law have been kept by theCompany so far as it appears from our examinations of those books;
c. The Balance Sheet Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisreport are in agreement with the relevant books of account;
d. In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under section 133 of the Act read with relevant rulesissued there under;
e. On the basis of written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 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.
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 as at 31st March 2018on its financial position in its standalone financial statements as referred to in NoteNo. 47 [A to H] 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 tothe Investor Education and Protection Fund by the Company during the year ended 31stMarch 2018.
iv. The disclosure requirements relating to holding as well as dealings in specifiedbank notes were applicable for the period 08/11/2016 to 30/12/2016 which are not relevantto these financial statements. Hence reporting under this clause is not applicable.
Annexure - A to the Independent Auditors' Report
To the Members of:
GANESH HOUSING CORPORATION LIMITED
Referred to in paragraph (1) under the heading of "Report on Other Legal andRegulatory requirements" of our Report of even date to the standalone financialstatements of the company for the year ended 31st March 2018: (i) (a) The Company hasmaintained proper records showing full particulars including quantitative details andsituation of fixed assets. (b) All the assets have not been physically verified by themanagement during the year but there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such 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 properties areheld in the name of the Company.
(ii) The company is accounting various construction projects being built by it asinventory. There is a continuous monitoring of the construction projects. Hence thequestion of physical verification of the project does not arise. In case of Inventory ofRaw materials it has been physically verified during the year by the management. Theinventory shown in the accounts is in the nature of various construction projects. Hencenormal inventory records associated with manufacturing companies are not being kept.However the company is maintaining the necessary records to our satisfaction. Nodiscrepancies were noticed on verification between the physical stocks and book records.
(iii) The company has not granted any loan to any company Limited LiabilityPartnership Firm and other party covered in the Register maintained under section 189 ofthe Companies Act 2013. However by way of abundant caution we are giving opinion ofbusiness advances given by the company. The company has granted unsecured businessadvances to five companies covered in the Register maintained under section 189 of theCompanies Act 2013.
(a) The business advances granted to the companies listed in the Register maintainedunder Section 189 of the Companies Act 2013 are not prima facie prejudicial to theinterest of the company even though they are interest free and unsecured as the advancesare given to a group companies.
(b) The business advances granted to the companies listed in the Register maintainedunder Section 189 of the Companies Act 2013 are Interest free & repayable on demand.Hence the question of payment of interest and regular repayment of principal amount doesnot arise.
(c) There is no overdue amount in respect of the business advances granted to thecompanies listed in the Register maintained under Section 189 of the Companies Act 2013as the business advances are repayable on demand. (iv) In our opinion and according to theinformation and explanations given to us the Company has complied with the provisions ofSection 185 and 186 of the Companies Act 2013 with respect to the loans guarantiessecurities and investments made.
(v) The company has not accepted any public deposit within the meaning of provisions ofsections 73 to 76 or any other relevant provisions of the Companies Act 2013 and therules framed there under. Therefore the provisions of clause 3(v) of the Order are notapplicable to the Company.
(vi) We have broadly reviewed the cost records maintained by the company pursuant tothe rules made by the Central Government of India under sub-section (1) of section 148 ofthe Companies Act 2013 and are of the opinion that prima facie the prescribed costrecords have been maintained. We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and based on ourexamination of the records of the company undisputed statutory dues including ProvidentFund Employees' State Insurance Income Tax Sales Tax Service Tax Duty of Custom Dutyof Excise Value Added Tax Cess and other statutory dues with the appropriate authoritieshave been generally regularly deposited. According to the information and explanationsgiven to us no other undisputed amounts payable in respect of the aforesaid dues wereoutstanding as at 31st March 2018 for a period of more than six months from the date ofbecoming payable.
(b) According to the information and explanations given to us there are no dues ofIncome Tax Sales Tax Service Tax Duty of Custom Duty of Excise Valued Added Tax andCess which have not been deposited on account of any dispute other than the following:
|Name of Statute ||A.Y. ||Demand Raised Amt. Rs ||Demand Paid Amt. Rs ||With whom dispute is pending |
|Income Tax ||2007-2008 ||127343870/- ||0 ||ITAT Ahmedabad |
|Income Tax ||2008-2009 ||494887706/- ||143095169/- ||ITAT Ahmedabad |
|Income Tax ||2009-2010 ||44176840/- ||40000000/- ||ITAT Ahmedabad |
|Income Tax ||2009-2010 ||10331651/- ||1000000/- ||ITAT Ahmedabad |
|Income Tax ||2010-2011 ||130334350/- ||0 ||Pr.CIT-2 Ahmedabad |
|Income Tax ||2011-2012 ||185054140/- ||0 ||Pr.CIT-2 Ahmedabad |
|Income Tax ||2012-2013 ||20809200/- ||1000000/- ||ITAT Ahmedabad |
|Income Tax ||2015-2016 ||242969200/- ||0 ||Pr.CIT-2 Ahmedabad |
(viii) In our opinion and according to the information and explanations given to us bythe management and based on our examination of the records of the company the outstandingrepayment to a bank and financial institutions at the end of the financial year have beenpaid by the date of our audit report. The Company has not taken any loan from thegovernment. The company has not issued any Debentures.
(ix) According to the information and explanations given to us and based on ourexamination of the records of the company the company has not raised moneys by way ofinitial public offer or further public offer including debt instruments. The company hasutilized the monies raised by way of term Loans for the purposes for which they wereraised.
(x) According to the information and explanations given to us no material fraud by theCompany or on the company by its officers or employees has been noticed or reported duringthe year in course of our audit.
(xi) 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 approval mandated by the provisions ofSection 197 read with Schedule V to the Companies Act 2013.
(xii) In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Therefore the provisions of clause 3(xii) of the Orderare not applicable to the Company.
(xiii) According to the information and explanations given to us during the year therewere transactions with related parties. However the value of transactions were such thatthey were not within the scope of section 188. [Refer clause 15 of Companies (Meeting ofBoard and its powers) Rules 2014]. Hence all transaction with the related parties are incompliance with section 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.
(xiv) 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 under review. Accordingly the provisions of clause 3(xiv) of the Order are notapplicable to the Company. (xv) According to the information and explanations given to usand based on our examination of the records of the company the company has not enteredinto any non-cash transactions with directors or persons connected with him. Hence thequestion of complying with provisions of section 192 of Companies Act 2013 does notarise. Accordingly the provisions of clause 3(xv) of the Order are not applicable to theCompany.
(xvi) In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly the provisions of clause 3(xvi) ofthe Order are not applicable to the Company.
Annexure - B to the Independent Auditors' Report
To the Members of:
GANESH HOUSING CORPORATION LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") We have audited the internalfinancial controls over financial reporting of Ganesh Housing Corporation Limited("the Company") as of March 31 2018 in conjunction with our audit of thestandalone 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 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 Companies Act 2013.
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 issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 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 judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.
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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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.
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.
| ||For PURNESH R. MEHTA & CO. |
| ||Chartered Accountants |
| ||FRN: 142830W |
| ||PURNESH MEHTA |
|Place: Ahmedabad ||Proprietor |
|Date: 30/05/2018 ||Membership No.: 032812 |