We have audited the attached Balance Sheet of Ansal Properties &
Infrastructure Limited as at March 31, 2011 and also the Profit & Loss
Account and the Cash Flow Statement of the Company for the year ended
on that date, annexed thereto.
These financial statements are the responsibility of the Company''s
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
As required by the Companies (Auditors'' Report) Order, 2003 as amended
by the Companies (Auditors'' Report) (Amendment) Order, 2004
(collectively the Order) issued by the Central Government of India in
terms of Section 227 (4A) of the Companies Act, 1956 and on the basis
of such checks as we considered appropriate and according to the
information and explanations given to us, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
Further to our comments in the Annexure referred to above, we report
that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
b) In our opinion, proper books of account, as required by law, have
been kept by the Company so far as appears from our examination of
those books;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement, dealt with by this report, comply with the Accounting
Standards referred to in sub - section (3C) of Section 211 of the
Companies Act, 1956.
e) On the basis of written representations received from the directors
as on March 31, 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2011
from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956.
f) Without qualifying our opinion, we draw attention to :
i. Note no. B(4) of Schedule 17 wherein the company has claimed
exemption of Rs. 39.91 lacs during the year in addition to exemption
accounted for upto March 31, 2010 of Rs. 3408 lacs under section 80 IA
of the Income Tax Act, 1961 being tax profits arising out of sale of
Industrial Park units, pending the notification of the same by Central
Board of Direct Taxes. Further the company has taken opinion from a
senior counsel that its application satisfies all the conditions
specified in the said Scheme of Industrial Park. We have relied on
management contention.
ii. Note no. B - 6(b) of Schedule 17 wherein the company is carrying
project inventory of Rs. 16719 lacs for one of its Group Housing
projects. The company has applied to the Authority for developing the
project on the basis of revised Scheme announced by the Authority which
is pending approval. The management is of the view that there is no
impairment in the value of land/project and we have relied on
management contention.
iii. Note no. B -6 (a) of Schedule 17 wherein the company has given
advances to land owning companies/ collaborators/ others for purchase
of land/ others of Rs.16603 lacs. In the absence of details of land
purchased/ end use for intended purposes and financial position of
these parties, we understand from management that such advances are
given in respect of ongoing transactions and are regarded as being in
the normal course of business. We have relied on management contention.
g) The company has not considered for the estimated cost of land to be
incurred in future for one of its large Township projects and also not
considered borrowing costs to be incurred in future in general for
determining the project revenues, project inventory and debtors.
Referring Note no. B-2 of Schedule 17, wherein according to the
management the amount of these items cannot be determined at this
stage, we are unable to comment on the consequential impact thereof on
the carrying value of project inventory, revenue recognition and
outstanding debtors and other adjustments that may be necessitated on
this account.
h) The Company has, during last year, changed its accounting policy in
respect of accounting for certain costs in the nature of administration
and selling costs by charging them off to Profit & Loss against the
earlier policy of treating them as part of project cost for determining
project inventory, revenue and debtors. Expenditure of such nature
incurred in earlier years and considered as part of project inventories
under Projects/ Contract work in progress upto 31st March, 2009 has
been carried forward as such. Such amount has not been determined by
the management in view of the practical difficulties involved, as
explained. In the absence of availability of these amounts relating to
the period upto 31st March 2009, we are unable to comment on the impact
thereof on the carrying value of project inventories, revenue
recognition and outstanding debtors and other adjustments that may be
required.
Subject to that stated in clause g) and h) above having its impact as
aforesaid, in our opinion and to the best of our information and
according to the explanations given to us, the said accounts read with
the Accounting policies and Notes thereon give the information required
by the Companies Act, 1956 in the manner so required and give a true
and fair view in conformity with the accounting principles generally
accepted in India:
i) In the case of Balance Sheet, of the state of affairs of the Company
as at March 31, 2011;
ii) In the case of Profit and Loss Account, of the Profit for the year
ended on that date; and
iii) In the case of Cash Flow Statement, of the Cash flows for the year
ended on that date.
ANNEXURE TO AUDITORS'' REPORT
(Annexure referred to in our report of even date)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a phased programme of physical verification of its
fixed assets which, in our opinion, is reasonable having regard to the
size of the Company and the nature of its assets. All the fixed assets
identified during the year for verification have not been physically
verified by the management. However, discrepancies noticed during
physical verification have been recorded and accounted for in the books
of account to the extent of verification carried out.
(c) Fixed assets disposed off during the year were not substantial.
2. (a) As explained to us, physical verification has been conducted by
the management at reasonable intervals in respect of building material,
stores & spares and inventory of shops/ flats/ houses. In our opinion,
the frequency of such verification is reasonable.
(b) The procedures for the physical verification of inventory followed
by the management are, in our opinion, reasonable and adequate in
relation to the size of the Company and nature of its business.
(c) In our opinion, the Company is maintaining proper records of
inventory. The discrepancies noticed on physical verification of
inventory as compared to book records were not material and have been
properly dealt with in the books of account.
3. (a) The company has not granted any loans, secured or unsecured, to
companies, firms or other parties listed in the register maintained
under section 301 of the Companies Act, 1956.
(b) Since there are no such loans, the comments regarding repayment of
the principal amount and interest due thereon and overdue amounts are
not required.
(c) The company has taken deposits from one of the directors covered in
the register maintained under section 301 of the Companies Act, 1956.
In our opinion the rate of interest and other terms and conditions of
such deposits are not prima facie, prejudicial to the interest of the
company. The maximum amount of deposit during the year was Rs. 9 lacs
and the year end balance was also Rs. 9 lacs.
(d) In respect of deposits taken, repayment of the principal and
interest has been regular. There are no overdue amounts at the year
end.
4. In our opinion, and according to the information and explanations
given to us during the course of audit, there are adequate internal
control systems commensurate with size of the Company and the nature of
its business with regard to purchase of inventory and fixed assets and
for the sale of services. Further, on the basis of our examination of
the books & records of the company, carried out in accordance with the
generally accepted auditing practices in India, we have neither come
across nor have we been informed of any instance of major weaknesses in
the aforesaid internal control systems. The company''s activity does not
qualify for sale of goods. However, the internal control systems with
regard to documentation of advances given to land owning companies/
collaborators/ associates/ others need improvement.
5. (a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
particulars of contracts or arrangements that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions with parties in pursuance of contracts or
arrangements, with whom transactions exceeding the value of Rupees Five
Lacs in respect of each party have taken place during the financial
year, are at prices, which are reasonable, having regard to the
prevailing market prices at the relevant time where such market prices
are available.
6. In respect of fixed deposits accepted from the public, the
provisions of section 58A and 58AA or any other relevant provisions of
the Companies Act, 1956 including the Companies (Acceptance of Deposit)
Rules, 1975 have been complied with. We have been informed that no
order has been passed by Company Law Board or National Company Law
Tribunal or RBI or any Court or any other Tribunal in this regard.
7. In our opinion, the Company has an internal audit system
commensurate with the size & nature of its business.
8. The Central Government has not prescribed for maintenance of Cost
Accounting records pursuant to the requirements of clause (d) of
sub-section (1) of section 209 of the Companies Act, 1956 for any of
the activities of the company.
9. (a) In our opinion and according to the information and
explanations given to us, according to the records of the Company,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Sales tax, Wealth-tax,
Custom Duty, Excise Duty, Cess and other material statutory dues,
wherever applicable, have been generally regularly deposited with the
appropriate authorities except in certain cases of delays of Service
Tax, Employees State Insurance and Tax deducted at source which have
been deposited with interest. However there are no such undisputed
statutory dues payable for a period of more than six months from the
date they became payable as at March 31, 2011.
(b) According to the information and explanations given to us and as
per the books and records examined by us, there are no dues of Customs
duty, Excise duty, Service tax and Cess which have not been deposited
on account of any dispute, except the following in respect of disputed
Sales tax, Wealth tax and Income Tax along with the forum where dispute
is pending:
S.
No. Name of Statute Nature of Dues Amount Assessment Forum where
pending
(Rs.in
lacs) Year
(i) Income Tax Act Interest on FBT 0.49 2006-07 Asstt.
Commissioner
of Income Tax,
New Delhi
(ii) Wealth Tax Act Wealth Tax 0.45 1992-93 Asstt.
Commissioner
of Wealth Tax,
New Delhi
(iii) Wealth Tax
Act Wealth Tax 0.50 1997-98 Deputy
Commissioner
of Wealth Tax,
New Delhi
(iv) Wealth Tax Act Wealth Tax 0.96 2000-01 Deputy
Commissioner
of Wealth Tax,
New Delhi
(v) Local Area Local Area 8.73 2003-04 Joint Excise &
Taxation
Development
Tax Act Development Tax Commissioner
(Appeal),
Gurgaon
(vi) Sales Tax Act Delhi Sales Tax 4.47 1999-2000 Assessing Officer
Delhi
(vii) Sales Tax Act Delhi Sales Tax 33.17 2004-05 Sales Tax
Tribunal, Delhi
(viii) Sales Tax
Act Haryana Sales Tax 11.68 2005-06 Joint
Commissioner
(Appeal), Gurgaon
(ix) Sales Tax Act UP Sales Tax 55.02 2005-06 Trade Tax
Tribunal,
Ghaziabad
(x) Sales Tax Act UP Sales Tax 96.04 2006-07 Trade Tax
Tribunal,
Ghaziabad
(xi) Sales Tax Act UP Sales Tax 0.29 2006-07 Additional
Commissioner
(Appeal),
Ghaziabad
(xii) Sales Tax Act UP Sales Tax 2.38 2008-09 Additional
Commissioner
(Appeal),
Ghaziabad
(Xiii) Sales Tax
Act UP Sales Tax 1.08 2008-09 Additional
Commissioner
(Appeal),
Ghaziabad
(xiv) Sales Tax Act UP Sales Tax 62.19 2007-08 Trade Tax
Tribunal,
Ghaziabad
10. There are no accumulated losses of the Company as at the end of
the financial year. There are no cash losses during the financial year
and in the immediately preceding financial year
11. According to the information and explanations given to us and as
per the books and records examined by us, we report as follows:
a) In respect of payments due for Debentures on account of Principal,
Premium and Interest aggregating Rs 1350 lacs to LIC Mutual Fund and Rs
1000 Lacs to HDFC India Real Estate Fund (HIREF), payments were delayed
from 1 day to 341 days and these dues were cleared upto the close of
financial year. Other amount due in respect of Debentures to LIC Mutual
Fund aggregating Rs 9379 Lacs and HIREF of Rs 2008 Lacs have been
outstanding for 1 day to 250 days as at the close of financial year and
are outstanding as on date.
b) Amounts due in respect of Term Loans from Banks / Financial
Institutions on account of Principal & Interest aggregating Rs 22739.03
Lacs (as per detail noted here under) were delayed and have been fully
paid.
c) In respect of other amounts due to Banks / Financial Institutions
aggregating to Rs 4983.63 Lacs (as per details noted hereunder), the
payments have been delayed from 1 days to 355 days and are outstanding
as on date.
As explained by the management, the delays are attributable to the
delays in processing of Company''s proposal for rescheduling and
restructuring in several cases.
Note: - 1. The detail of amounts referred to in Clause (b) above
LIC of India 2 instances of Rs.1780.61 Lacs (Rs 1680.61 Lacs during the
financial year and Rs 100 Lacs subsequently) with delay ranging from 1
to 345 days
IDBI Bank Ltd. 9 instances of Rs. 660.41 lacs (Rs 589.44 Lacs during
the financial year and Rs 70.97 Lacs subsequently) with delay ranging
from 1 to 90 days,
Central Bank of India 10 instances of Rs. 912.49 lacs (Rs 626.28 Lacs
during the financial year and Rs 286.21 Lacs subsequently) with delay
ranging from 1 to 69 days,
United Bank of India 10 instances of Rs. 1358.87 lacs (Rs 1124.72 Lacs
during the financial year and Rs 234.15 Lacs subsequently) with delay
ranging from 6 to 89 days,
UCO Bank 10 instances of Rs. 5632.71 lacs (Rs 1059.83 Lacs during the
financial year and Rs 4572.88 Lacs subsequently) with delays ranging
from 1 to 90 days,
Yes Bank Ltd. 2 instances of Rs. 1897.42 lacs (Rs 1116.71 Lacs during
the financial year and Rs 780.71 Lacs subsequently) with delays ranging
from 1 to 86 days,
Punjab National Bank 5 instances of Rs. 2974.05 (Rs 2441.18 Lacs during
the financial year and Rs 532.87 Lacs subsequently) with delays ranging
from 1 to 89 days,
Syndicate Bank 5 instances of Rs. 362.14 lacs (Rs 353.71 Lacs during
the financial year and Rs 8.43 Lacs subsequently) with delays ranging
from 1 to 50 days,
DSP MLC 4 instances of Rs. 515.91 Lacs (during the financial year) with
delays ranging from 1 to 60 days,
IFCI Factors Limited 4 instances of Rs.79.42 lacs (Rs 77.07 Lacs during
the financial year and Rs 2.35 Lacs subsequently) with delays ranging
from 1 to 10 days,
HDFC Limited 35 instances of Rs. 4159.40 lacs (Rs 3984.56 Lacs during
the financial year and Rs 174.84 Lacs subsequently) with delays ranging
from 1 to 70 days, and
LIC Housing Finance Limited 12 instances of Rs. 2405.59 lacs (Rs
2061.59 Lacs during the financial year and Rs 344 Lacs subsequently)
with delays ranging from 1 to 33 days.
2. The Detail of amounts referred to in Clause c) above
LIC of India 3 instances of Rs.1752.67 lacs ,
United Bank of India 2 instances of Rs. 479.99 lacs, and
HDFC Limited 1 instance of Rs. 2750.96 lacs,
12. According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures and other securities.
13. The Company does not fall within the category of Chit fund / Nidhi
/ Mutual Benefit fund / Society and hence the related reporting
requirements of the Order are not applicable.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments and hence the related reporting requirements of the
Order are not applicable.
15. The Company has given guarantees against loans taken by others
from banks & financial institutions; the terms & conditions of such
guarantees are not, prima facie, prejudicial to the interest of the
company.
16. In our opinion and according to the information and explanations
given to us, the term loans raised during the year by the Company have
been generally applied for the purpose for which the said loans were
obtained and for overall project related activity in general.
17. According to the information and explanations given to us and as
per the books and records examined by us, on an overall examination of
the Balance Sheet of the company, the funds raised by the Company on
short-term basis have not been applied for long-term investment.
18. The Company has not made any preferential allotment of shares to
parties and Companies covered in the register maintained under section
301 of the Companies Act, 1956.
19. According to the information and explanations given to us and the
records examined by us, the company has created necessary securities
for the debentures issued except those issued to one of the lenders
wherein the security provided by the company is less than the total
amount of debentures necessitating classification of the balance amount
of debentures as unsecured. We are explained that the said lender is
not pursuing for any additional security.
20. The Company has raised funds by way of preferential and QIP issues
during the year, the funds having been utilized for repayment of loans
and other corporate purposes as defined in the terms of respective
issues.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of fraud on or by the Company, noticed and reported during the year,
nor have we been informed of such case by the management.
For S. S. KOTHARI MEHTA & CO.
Chartered Accountants
Firm Reg. No. 000756N
( ARUN K. TULSIAN )
Partner
Membership No. 89907
Place : New Delhi
Dated: 26th May, 2011
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