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Ganesh Housing Corporation Ltd.

BSE: 526367 Sector: Infrastructure
NSE: GANESHHOUC ISIN Code: INE460C01014
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OPEN 337.95
PREVIOUS CLOSE 325.40
VOLUME 20120
52-Week high 406.00
52-Week low 174.05
P/E 97.39
Mkt Cap.(Rs cr) 2,859
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 337.95
CLOSE 325.40
VOLUME 20120
52-Week high 406.00
52-Week low 174.05
P/E 97.39
Mkt Cap.(Rs cr) 2,859
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ganesh Housing Corporation Ltd. (GANESHHOUC) - Auditors Report

Company auditors report

To the Members of:

GANESH HOUSING CORPORATION LIMITED

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

Opinion

We have audited the accompanying standalone financial statements of GANESH HOUSINGCORPORATION LIMITED ("the company") which comprise the Balance Sheet as at 31stMarch 2022 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").

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 Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2022 and its profit (includingother comprehensive income) changes in equity and its cash flows for the year ended onthat date.

Basis for opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder Section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the standalone financial statementsunder the provisions of the Act and the Rules there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion on the Standalone Financial Statements.

Key audit matters

Key audit matters (‘KAM') are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matter described below to bethe key audit matters to be communicated in our report.

The key audit matters How our audit addressed the key audit matter
Investment in subsidiaries - refer note 3 to the standalone financial statements
Assessment of impairment of investment in subsidiaries: The carrying amount of the investments in subsidiaries held at cost less impairment represents 20.68% of the Company's total assets respectively. Our audit procedures to assess recoverability included the following: Comparing the carrying amount of investments in the Company's books with the net asset balance in the relevant audited / unaudited balance sheet of subsidiaries. This is to identify if their net assets (being an approximation of their minimum recoverable amount) were in excess of their carrying amount;
The Company has investments in subsidiaries. These investments are carried at cost less any diminution in value of such investments. The investments are analyzed for impairment at each reporting date by comparing the carrying value of investments in the Company's books with the net assets of the relevant subsidiaries' balance sheet. Further the Company assesses the projected cash flows of the real estate projects in these underlying entities. This involve significant estimates and judgment due to the inherent uncertainty involved in forecasting future cash flows. There is significant judgment in estimating the timing of the cash flows and the relevant discount rate.
For the investments where the carrying amount exceeded the Company's share in net asset value we compared the carrying amount of the investment with the projected cash flows and profitability. This is based on approved business plans of the subsidiaries; and
The loss of Madhukamal Infrastructure Private Limited has reduced from Rs 15556.65 lakh to Rs 8474.52 lakh during the year.
The company has three subsidiaries. One subsidiary is form during F.Y. 2021-2022 and has a negligible loss. However accumulated loss of Madhukamal Infrastructure Private Limited is Rs 8474.52 lakh. Considering the impairment assessment involves significant assumptions and judgement this is considered as a key audit matter Considering the adequacy of disclosures in respect of the investment in subsidiaries.
Inventories - refer note 8 to the standalone financial statements
Assessment of net realisable value (NRV) of inventories: Our audit procedures to assess the net realisable value (NRV) of inventories included the following:
Inventories on construction of residential units comprising ongoing and completed projects initiated but unlaunched projects and land stock represents a significant portion of the Company's total assets. The Company recognises profit on the sale of each commercial & residential unit with reference to the overall profit margin depending upon the total cost incurred on the project. A project comprises multiple units the construction of which is carried out over a number of years. The recognition of profit for sale of a unit is therefore dependent on the estimate of future selling prices and construction costs. Further estimation uncertainty and exposure to cyclicality exists within long- term projects. Enquiry with the Company's personnel to understand the basis of computation and justification for the estimated recoverable amounts of the unsold units ("the NRV assessment"); Assessing the Company's valuation methodology for the key estimates data inputs and assumptions adopted in the valuation. This involved comparing expected average selling prices with published data such as recently transacted prices for similar properties located in nearby vicinity of each project and the sales budget maintained by the Company;
Forecasts of future sales are dependent on market conditions which can be difficult to predict and be influenced by political and economic factors. While analyzing the expected average selling price we have performed a sensitivity analysis on the selling price and compared this to the budgeted cost;
Considering the significance of the amount of carrying value of inventories and the involvement of significant estimation and judgement in assessment of NRV this is considered as a key audit matter. For our samples obtained the fair valuation reports of such land parcels for assessing the valuation methodology key estimates and assumptions adopted in the valuation; and Verifying the NRV assessment and comparing the estimated construction costs to complete each development with the Company's updated budgets;
Obtaining a Register Valuer's certificate for a vast track of property becomes an extremely costly proposition for estimating NRV & hence other methods are used.
Land advances - refer note 12 to the standalone financial statements
Assessment of recoverability of land advances Land advance represents a significant portion of the Company's total assets. Our audit procedures to assess the recoverability of land advances included the following:
Land advance represents the amount paid towards procurement of land parcels to be used in the future for construction of commercial & residential projects. These advances are carried at cost less impairment losses. These land advances will be converted into land parcels as per the terms of the underlying contracts under which these land advances have been given. Enquiry with the Company's personnel on the process of providing land advances and test of key controls over such land advances paid during the year;
The carrying value of advances are tested for recoverability by the Company by comparing the valuation of land parcels in the same area for which land advances have been given. Considering the quantum of the amount of carrying value of land advances to total assets of the Company and significant estimates and judgements involved in assessing recoverability of land advances this has been considered as a key audit matter Enquiry with the Company's personnel also covered obtaining reasons on the long-standing land advances and understanding Company's plan for conversion of the land advances to land stock;
For our samples verified the underlying agreements or Memorandum of understanding in possession of the Company based on which land advances were given to assess the Company's rights over the land parcels in subject; For our samples obtained the fair valuation reports of such land parcels for assessing the valuation methodology key estimates and assumptions adopted in the valuation.; and For our samples verified the published guidelines values for the area in which these land parcels are situated
Business Advances to Subsidiaries & other companies (refer to note 12 and 45 to the standalone financial statements)
Recoverability of business advances to subsidiaries and other companies: Recoverability of business advances to subsidiaries and group companies:
The carrying amount of the business advances & other advances to subsidiaries group companies & others represents 27.12% of the Company's total assets respectively. Our audit procedures included:
We reviewed the controls in place for issuing new business advances and evidenced the Board / CFO approval obtained.
The Company has extended business advances to subsidiaries & group companies that are assessed for recoverability at each period end. 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 bank statement; and We have obtained independent confirmations to ensure completeness and existence on test check basis of business advances held by related parties as on 31st March 2022.
The company has given total loans & advances of Rs 30200.10 lakh. Out of this Rs 29443.38 lakh are business advances to subsidiaries companies Rs 22.45 lakh to other related parties & Rs 146.58 lakh to others. Rs 435.51 lakh are business advances for purchase of land on behalf of the company given to related parties & Rs 50.00 lakh given to others and Rs 102.18 lakh other miscellaneous advances at 31st March 2022.
Due to the nature of the business in the real estate industry the Company is exposed to 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.
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 –
• Read and analysed select key correspondences external
Refer Note 46 to the financial statements. 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.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the consolidated financial statement standalonefinancial statements and our auditors' report thereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in thisregard.

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.

In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Board of Directors is also responsible for overseeing the Company's financial reportingprocess.

Auditor's responsibilities for the audit of the standalone financial statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: Identify and assess therisks of material misstatement of the standalone financial statements whether due tofraud or error design and perform audit procedures responsive to those risks and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the company hasadequate internal financial controls with reference to standalone financial statements inplace and the operating effectiveness of such controls.

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

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditors' report. However future events or conditions may cause the Company to cease tocontinue as a going concern. Evaluate the overall presentation structure and content ofthe standalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalone financial statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the standalone financial statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the standalone financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant de_ciencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditors' report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2020 ("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 andobtained all the information and explanations which to the best of our knowledge andbeliefs were necessary for the purposes of our audit; b. In our opinion proper books ofaccounts as required by Law have been kept by the Company so far as it appears from ourexaminations of those books; c. The Balance Sheet Statement of Profit and Loss includingOther Comprehensive Income the Cash Flow

Statement and Statement of Changes in Equity dealt with by this report are in agreementwith the relevant books of account; d. In our opinion the aforesaid standalone financialstatements comply with the Indian Accounting Standards specified under section 133 of theAct read with relevant rules issued there under; e. On the basis of writtenrepresentations received from the directors and on record by the Board of Directors noneof the directors is disqualified as on 31st March 2022 from being appointed as a directorin terms of Section 164(2) of the Act. f. With respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate report in Annexure – B. g. Withrespect to the other matters to be included in the Auditor's Report in accordance with therequirements of section 197(16) of the Act as amended In our opinion and to the best ofour information and according to the explanations given to us the remuneration paid bythe Company to its directors during the year is in accordance with the provisions ofsection 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) Rules2014 as amended 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 at 31st March 2022on its financial position in its standalone financial statements as referred to in NoteNo. 46 [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 2022.

iv. (a) The Management has represented that to the best of its knowledge and beliefno funds except note no. 51 (which are material either individually or in the aggregate)have been advanced or loaned or invested (either from borrowed funds or share premium orany other sources or kind of funds) by the Company to or in any other person or entityincluding foreign entity ("Intermediaries") with the understanding whetherrecorded in writing or otherwise that the Intermediary shall whether directly orindirectly lend or invest in other persons or entities identified in any manner whatsoeverby or on behalf of the Company ("Ultimate Beneficiaries") or provide anyguarantee security or the like on behalf of the Ultimate Beneficiaries;

(b) The Management has represented that to the best of its knowledge and belief nofunds (which are material either individually or in the aggregate) have been received bythe Company from any person or entity including foreign entity ("FundingParties") with the understanding whether recorded in writing or otherwise that theCompany shall whether directly or indirectly lend or invest in other persons orentities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries;

(c) Based on the audit procedures that have been considered reasonable and appropriatein the circumstances and based on the test checks carried out by the auditor nothing hascome to our notice that has caused us to believe that the representations under subclause(i) and (ii) of Rule 11(e) as provided under (a) and (b) above contain any materialmisstatement. (Refer note no. 51) v. During the year the company has not declared or paidany interim or final dividend. Hence the question of payment of dividend in accordancewith section 123 of the Companies Act 2013 does not arise.

FOR PURNESH R. MEHTA & CO.
Chartered Accountants
FRN:- 142830W
PURNESH MEHTA
Proprietor
Place:- Ahmedabad Membership No.:- 032812
Date :- 12/05/2022 UDIN:_ 22032812AIVFEA8441

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 2022:

To the best of our information and according to the explanations provided to us by theCompany and the books of account and records (i) In respect of the Company's PropertyPlant and Equipment and Intangible Assets: (a) (A) The Company has maintained properrecords showing full particulars including quantitative details and situation ofProperty Plant and Equipment.

(B) The Company has maintained proper records showing full particulars of intangibleassets. (b) All the assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion isreasonable having regard to the size of the company and the nature of its assets.According to the information and explanations given to us no material discrepancies werenoticed on such verification.

(c) According to the information and explanations given to us and based on ourexamination of the records of the Company the title deeds of immovable propertiesdisclosed in the standalone financial statements are held in the name of the Company.(Refer Note No. 66) (d) The Company has not revalued any of its Property Plant andEquipment and intangible assets during the year.

(e) No proceedings have been initiated during the year or are pending against theCompany as at March 31 2022 for holding any benami property under the Benami Transactions(Prohibition) Act 1988 (as amended in 2016) and rules made thereunder.

(ii) (a) The management of the company has conducted physical verification of itsinventory at reasonable intervals and procedure of such verification by the management ofthe company is appropriate. The company is accounting various construction projects beingbuilt by it as inventory. There is a continuous monitoring of the construction projects.In case of Inventory of Raw materials it has been physically verified during the year bythe management. The inventory shown in the accounts is in the nature of variousconstruction projects. The company is maintaining the necessary records to oursatisfaction. No discrepancies in excess of 10% or more in aggregate for each class wasnoticed on verification between the physical stocks and book records.

(b) The Company has not been sanctioned working capital limits in excess of Rs 5 crorein aggregate at any points of time during the year from banks or financial institutionson the basis of security of current assets and hence reporting under clause 3(ii)(b) ofthe Order is not applicable. Term loan sanctioned are in our opinion outside the purviewof this clause.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has made investments in threesubsidiary companies provided guarantee or security to one subsidiary company. Thecompany has not granted any loan to Limited Liability Partnership Firm and other partyduring the year. However the company has given unsecured business advances to tencompanies during the year.

(a) A. Based on the audit procedures carried on by us and as per the information andexplanations given to us the Company has granted business advances and provided guaranteeor security to subsidiaries as below:

Particulars Amt. Rs in Lakh
Business Advances Security offered book value Guarantee given book value
Aggregate amount during the year – Subsidiaries 25191.80 1073.37 3832.90
Balance outstanding as at balance sheet date – Subsidiaries 29443.38 1073.37 3832.90

B. Based on the audit procedures carried on by us and as per the information andexplanations given to us the Company has granted loans to parties other thansubsidiaries joint ventures and associates as below:

Particulars Amt. Rs in Lakh
Business Advances
Aggregate amount during the year – Others 14591.85
Balance outstanding as at balance sheet date – Others 169.03

(b) According to the information and explanations given to us and based on the auditprocedures conducted by us we are of the opinion that the terms and conditions of thebusiness advances given can be said to be prima facie prejudicial to the interest of thecompany as the business advances are unsecured & interest free. However the businessadvances were given to group companies and hence in our opinion the terms of the businessadvances are not prima facie prejudicial to the interest of the company.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company in the case of business advances given arerepayable on demand. Hence the question of the repayment of principal and payment ofinterest has not been stipulated and the repayments or receipts have been regular does notarise.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company business advances given are repayable ondemand. Hence the question of overdue amount for more than ninety days and reasonablesteps taken by the company for recovery of the principal and interest does not arise.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no business advances granted by the Companywhich has fallen due during the year has been renewed or extended or fresh businessadvances granted to settle the over dues of existing business advances given to the sameparties.

(f ) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not given any business advanceseither repayable on demand or without specifying any terms or period of repayment.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013with respect to the loans guaranties securities and investments made. The company haspassed general resolution for section 185 & 186.

(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. No order has been passed by Company Law Board or NationalCompany Law Tribunal or Reserve Bank of India or any court or any other tribunal.Accordingly reporting under clause 3(v) of the Order is not applicable 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) Inrespect of statutory dues: (a) According to the information and explanations given to usand based on our examination of the records of the company undisputed statutory duesincluding Goods and Services tax Provident Fund Employees' State Insurance Income TaxSales Tax Service Tax duty of Custom duty of Excise Value Added Tax Cess and othermaterial statutory dues applicable to it with the appropriate authorities have beengenerally regularly deposited.

There were no undisputed amounts payable in respect of Goods and Service tax ProvidentFund Employees' State Insurance Income Tax Sales Tax Service Tax duty of Custom dutyof Excise Value Added Tax Cess and other material statutory dues in arrears as at March31 2022 for a period of more than six months from the date they became payable.

(b) Details of statutory dues referred to in sub-clause (a) above which have not beendeposited as on March 31 2022 on account of disputes are given below:

Nature of Statute Nature of Dues Period to which the amount Relates A.Y. Demand Raised Amt. Rs in lakh Forum where dispute is pending
Income Tax Act 1961 Income Tax 2015-2016 154.55 CIT-(A) Ahmedabad
Income Tax Act 1961 Income Tax 2017-2018 83.32 CIT-(A) Ahmedabad
Income Tax Act 1961 Income Tax 2018-2019 14.07 A.O. Ahmedabad

(viii) There were no transactions relating to previously unrecorded income that havebeen surrendered or disclosed as income during the year in the tax assessments under theIncome Tax Act 1961 (43 of 1961).

(ix) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the company is generally regular and hasnot defaulted in repayment of loans or other borrowings or in the payment of interestthereon to any lender on the date of our report.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been declared a wilfuldefaulter by any bank or financial institution or other lender.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the term loan of the Company were prima facieapplied for the purpose for which the loans were obtained.

(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company funds raised on short-term basis have primafacie not been used during the year for long-term purposes by the Company.

(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company during the year the company has not taken anyfunds from any entity or person on account of or to meet the obligations of itssubsidiaries. However the company has given business advances to its subsidiaries fromits own funds.

(f ) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company we report that the Company has not raised loansduring the year on the pledge of securities held in its subsidiaries as defined under theCompanies Act 2013. Accordingly reporting under clause 3(ix)(f ) of the Order is notapplicable to the Company.

(x) (a) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments). Accordingly reporting under clause 3(x)(a) ofthe Order is not applicable to the Company.

(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has made preferential allotment onprivate placement basis of 2460000 Equity Shares at Rs 58/- per share [including premiumof Rs 48/- per share] during the year. The requirements of section 42 of the CompaniesAct 2013 has complied and the funds raised has used for the purposes for which the fundswere raised. The Company has not made any issue of fully or partly convertible debenturesduring the year under review.

(xi) (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us considering the principles of materialityoutlined in Standards on Auditing we report that no fraud by the Company or on theCompany has been noticed or reported during the course of the audit.

(b) According to the information and explanations given to us no report undersub-section (12) of Section 143 of the Companies Act 2013 has been filed by the auditorsin Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government during the year and up to the date of this report.

(c) According to the information and explanations given to us during the year complainwas received from person with _ctitious address and most probably false name. Thecomplainant had sent a letter alleging various issues with the accounts without anyproof. Hence the company has decided to not term it as whistle blower complaint.

(xii) According to the information and explanations given to us the Company is not aNidhi Company. Accordingly reporting under clause 3(xii) of the Order is not applicableto the Company.

(xiii) In our opinion and according to the information and explanations given to usthe transactions with related parties are in compliance with Sections 177 and 188 of theCompanies Act 2013 where applicable and the details of the related party transactionshave been disclosed in the standalone financial statements as required by the applicableIndian Accounting Standards.

(xiv) (a) In our opinion and according to the information and explanations given to usthe Company has an internal audit system commensurate with the size and nature of itsbusiness.

(b) We have considered the internal audit reports of the Company issued till date forthe period under audit. (xv) In our opinion and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withits directors or persons connected to its directors and hence provisions of Section 192of the Companies Act 2013 are not applicable to the Company.

(xvi) (a) In our opinion the Company is not required to be registered under section45-IA of the Reserve Bank of India Act 1934. Accordingly reporting under clause 3(xvi)(a) (b) and (c) of the Order are not applicable to the Company.

(b) In our opinion there is no core investment company within the Group (as defined inthe Core Investment Companies (Reserve Bank) Directions 2016). Accordingly reportingunder clause 3(xvi)(d) of the Order is not applicable to the Company.

(xvii) The Company has not incurred cash losses in the financial year covered by ouraudit. The company has incurred cash losses of

Rs 4436.80 lakh in the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year.Accordingly reporting under clause 3(xviii) of the Order is not applicable to theCompany.

(xix) On the basis of the financial ratios ageing and expected dates of realisation offinancial assets and payment of financial liabilities other information accompanying thefinancial statements and our knowledge of the Board of Directors and Management plans andbased on our examination of the evidence supporting the assumptions nothing has come toour attention which causes us to believe that any material uncertainty exists as on thedate of the audit report indicating that Company is not capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date. We however state that this is not an assurance as tothe future viability of the Company. We further state that our reporting is based on thefacts up to the date of the audit report and we neither give any guarantee nor give anyassurance that all liabilities falling due within a period of one year from the balancesheet date will get discharged by the Company as and when they fall due.

(xx) (a) There are no unspent amounts towards Corporate Social Responsibility (CSR) onother than ongoing projects requiring a transfer to a Fund specified in Schedule VII tothe Companies Act in compliance with second proviso to sub-section (5) of Section 135 ofthe said Act. Accordingly reporting under clause 3(xx) (a) of the Order is not applicableto the company.

(b) There are no unspent amounts towards Corporate Social Responsibility (CSR) onongoing projects under subsection (5) of section 135 of the Companies Act has beentransferred to special account in compliance with the provision of sub-section (6) ofsection 135 of the said Act. Accordingly reporting under clause 3(xx) (b) of the Order isnot applicable to the Company.

FOR PURNESH R. MEHTA & CO.

Chartered Accountants FRN:- 142830W

PURNESH MEHTA

Proprietor Place:- Ahmedabad Membership No.:- 032812 Date :- 12/05/2022 UDIN:_22032812AIVFEA8441

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 internal financial controls over financial reporting of GaneshHousing Corporation Limited ("the Company") as of March 31 2022 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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.

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 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit 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 standalone 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 (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.

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 2022 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
Proprietor
Place:- Ahmedabad Membership No.:- 032812
Date :- 12/05/2022 UDIN:_ 22032812AIVFEA8441

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