1. We have audited the attached Balance Sheet of M/s Ansal Housing &
Construction Ltd. as at 31st March 2008 and also the Profit and Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We 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, evidences supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by (Amendment) Order, 2004 issued by the Central Government of
India in terms of sub-section (4A) of section 227 of the Companies Act,
1956, we enclose in the Annexure, a statement on the matters specified
in paragraphs 4 and 5 of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
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 the
books.
c) The Balance Sheet, Profit and 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 and Loss Account and Cash
Flow Statement dealt with by this report comply with accounting
standards referred to in sub section (3C) of Section 211 of the
Companies Act, 1956.
e) On the basis of the written representations received from the
directors as on 31st March 2008 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2008 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956.
f) The accounts read with accounting policies and other notes, in our
opinion and to the best of our information and according to the
explanations given to us, give the information required by the
Companies Act, 1956, in the manner so required and give true and fair
view in conformity with the accounting principles generally accepted in
India:
i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March 2008 and;
ii) in the case of the Profit and Loss Account, of the profit for the
year ended on that date.
iii) in the case of the cash flow statement, of the cash flows for the
year ended on that date.
Annexure to the Auditors Report
(Referred to in Paragraph 3 Thereof)
1. a) The Company is maintaining proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us the fixed assets are physically verified by the
management in a phased periodical manner, which in our opinion is
reasonable, having regard to the size of the Company and nature of its
assets. No material discrepancies were noticed on such physical
verification.
c) The Company has not disposed off a substantial part of the fixed
assets during the year and hence the going concern assumption is not
affected.
2. a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b) In our opinion and according to the explanations given to us, the
procedures of physical verification of inventories followed by the
management are reasonable and adequate in relation to the size of the
Company and the nature of its business.
c) The Company has maintained proper records of inventory. As explained
to us, there were no material discrepancies noticed on physical
verification of inventory as compared to the book records.
3. a) The Company has granted unsecured interest free loan to a wholly
owned subsidiary. The maximum amount involved during the year was
Rs.1036.28 lacs and year-end balance of loan was Rs.500 lacs.
b) The loan is interest free being given to a wholly owned subsidiary.
c) In respect of loan given to the wholly owned subsidiary there is no
stipulation towards repayment.
d) The Company has not taken deposits from the parties covered in the
register maintained under section 301 of the Companies Act.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedure
commensurate with the size of the Company and the nature of its
business for purchase of inventory and fixed assets and for sale of
goods and services. During the course of audit, we have neither come
across nor have been informed of any continuing failure to correct
major weakness in the aforesaid internal control procedures.
5. a) According to information and explanation given to us, we are of
the opinion that the transactions that need to be entered into the
register in pursuance of 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 made in pursuance of
contracts or arrangements entered into the register in pursuance of
section 301 of the Companies Act, 1956 and exceeding the value of Rs.
Five lacs in respect of each party during the year have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of sections
58A and 58AA or any other relevant provisions of the Companies Act,
1956 and the Companies Acceptance of Deposits Rules, 1975. According to
the information and explanations given to us, in this regard, no order
under the aforesaid sections has been passed by the Company Law Board
or National Company Law Tribunal or Reserve Bank of India or any Court
or any other Tribunal on the Company.
7. In our opinion the Company has an internal audit system
commensurate with the size and nature of its business.
8. The Central Government of India has not prescribed the maintenance
of cost records U/s 209 (1) (d) of the Companies Act, 1956 for any of
the products of the Company.
9. a) According to the information and explanations given to us, and
records of the Company examined by us, in our opinion, the Company is
generally regular in depositing with appropriate authorities statutory
dues including provident fund, investor education and protection fund,
employees state insurance, income- tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other statutory dues, wherever
applicable.
b) According to the information and explanations given to us and the
records of the Company examined by us, the disputed amounts payable in
respect of income- tax, sales tax, wealth tax, custom tax and excise
duty/cess not deposited with the appropriate authorities are as
follows:
Nature of dues Amount
(Rs. In lacs)
Income Tax
181.41
17635
178.61
144.87
Wealth Tax 6.49
0.64
Sales Tax 12.38
31.50
Period to which Forum where
the amount relates dispute is pending
Assessment year
2666-61 ITAT, Delhi Bench, New Delhi
2661-62 ITAT, Delhi BencKNew Delhi
2004-05 ClT (A)-l, New Delhi
CIT (AR NewDelhi
Assessment Year 2004-05 CWT (Appeais)-I, New Delhi
Assessment Year 2005-06 CWT (Appeais)-I, New Delhi
Assessment Years 2003-04 Dy Commissioner, Sales Tax, Ghaziabad.
and 2004-05
10. The Company does not have any accumulated losses and has not
incurred cash losses during the financial year covered by our audit and
the immediately preceding financial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, during the year there has
been no delay in repayment of dues within the originally stipulated
period or the extended period to financial institutions.
12. According to the information and explanation 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 provisions of any special statute applicable to chit fund/
nidhi / mutual benefit fund / societies are not applicable to the
Company.
14. In our opinion, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
15. In our opinion and based on the information and explanations given
to us, the Company has not given any guarantee for loans taken by
others except for its wholly owned subsidiary from banks or financial
institutions during the year.
16. According to the information and explanations given to us and the
records examined by us, terms loans obtained for financing real estate
projects, in our opinion, on an overall basis, were used for the real
estate projects.
17. On the basis of an overall examination of the Balance sheet of the
Company, in our opinion and according to the information and
explanations given to us, there are no funds raised on short term basis
which have been used for long term investments.
18. The Company has made preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
section 301 of the Companies Act, 1956. In our opinion and according to
the information and explanations given to us, the price at which shares
have been issued to these parties is not prejudicial to the interest of
the Company.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us, during
the year, no fraud on or by the Company has been noticed or reported
during the course of our audit.
For Khanna & Annadhanam
Chartered Accountants
P. S. Pabreja
Place : New Delhi Partner
Date : 30th June,2008 Membership No. 10692
