Report on the Financial Statements
We have audited the accompanying fnancial statements of Ansal Housing
and Construction Limited (the Company), which comprise the Balance
Sheet as at 31 March, 2013, the Statement of Proft and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
signifcant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
fnancial statements that give a true and fair view of the fnancial
position, fnancial performance and cash fows of the Company in
accordance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956 (the Act) and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal
controls relevant to the preparation and presentation of the fnancial
statements that give a true and fair view and are free from material
misstatements, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these fnancial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the fnancial statements are free
from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the fnancial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the fnancial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal controls relevant to
the Company''s preparation and fair presentation of the fnancial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the efectiveness of the Company''s internal control. An audit also
includes evaluating the appropriateness of the accounting policies used
and the reasonableness of the accounting estimates made by the
Management, as well as evaluating the overall presentation of the
fnancial statements.
We believe that the audit evidence we have obtained is sufcient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid fnancial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
a) in the case of the Balance Sheet, of the state of afairs of the
Company as at 31 March, 2013;
b) in the case of the Statement of Proft and Loss, of the proft of the
Company for the year ended on that date and
c) in the case of the Cash Flow Statement, of the cash fows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order) issued by the Central Government in terms of Section 227(4A) of
the Act, we give in the Annexure a statement on the matters specifed in
paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, 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 purposes of our
audit.
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books.
c) The Balance Sheet, the Statement of Proft and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
d) In our opinion, the Balance Sheet, the Statement of Proft and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in Section 211(3C) of the Act.
e) On the basis of the written representations received from the
directors as on 31 March, 2013 taken on record by the Board of
Directors, none of the directors is disqualifed as on 31 March, 2013
from being appointed as a director in terms of Section 274(1)(g) of the
Act.
Based on the audit procedures performed for the purpose of reporting a
true and fair view on the Financial Statements of the Company and
taking into consideration the information and explanations given to us
and the books and accounts and other records examined by us in the
normal course of audit, we report that:
1. a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fxed
assets.
b) As explained to us, the fxed assets are physically verifed 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
verifcation.
c) The Company has not disposed of a substantial part of the fxed
assets during the year and hence the going concern assumption is not
afected.
2. a) As per information and explanations given to us, the inventory
of building materials, stores and spares, restaurant''s provisions,
beverages etc. and fats/shops/ houses etc. at major locations has been
physically verifed during the year by the management. In our opinion,
the frequency of verifcation is reasonable. According to the
information and explanations given to us, keeping in view the nature of
the operations of the Company, inventory of work-in-progress can not be
physically verifed.
b) In our opinion and according to the explanations given to us, the
procedures of physical verifcation 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 verifcation of inventory as compared to the book records.
3. a) The Company has granted unsecured interest free loan to a wholly
owned subsidiary company. The maximum amount involved during the year
and the 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 regarding repayment.
d) The Company has taken unsecured loan from two companies covered in
the register maintained under section 301 of the Companies Act, 1956
during the year. The maximum amount of loan during the year and the
year end balance was Rs. 1800 lacs.
e) 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.
f) In respect of loans taken by the Company, payment of interest has
been regular. The principal amount has not become due for payment
during the year.
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 fxed 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. In our opinion and according to the information and explanations
given to us, there are no contracts or arrangements that are needed to
be entered in the register maintained in pursuance of section 301 of
the Companies Act, 1956.
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. As per information and explanations given to us and as broadly
reviewed by us, the Company has maintained the cost records pursuant to
the Companies (Cost Accounting Record) Rules 2011 prescribed by the
Central Government under section 209 (1) (d) of the Companies Act,
1956. We have, however, not made a detailed examination of the records
with a view to determine whether they are accurate or complete.
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 undisputed
statutory dues relating to 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. However, there were delays in
deposit of service tax, sales tax and advance tax during the year.
Other than for undisputed amount of service tax of Rs. 5.80 lacs, there
are no undisputed amounts payable in respect of these dues which have
remained outstanding at 31st March, 2013 for a period of more than six
months from the date they became payable.
10. The Company does not have any accumulated losses and has not
incurred cash losses during the fnancial year covered by our audit and
the immediately preceding fnancial year.
11. According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in the repayment of dues to banks and fnancial institutions covered by
the Order during the year.
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 beneft 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. The Company has given guarantees for loans taken by its wholly
owned subsidiaries and other companies from banks or fnancial
institutions. In our opinion and based on the information and
explanations given to us, the terms and conditions of the guarantees
are not, prima facie, prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
records examined by us, terms loans obtained for fnancing 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 not made any preferential allotment of shares
during the year to parties and companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
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
(Firm Registration No. 001297N)
(Jitender Dhingra)
Place : New Delhi Partner
Date : 29th May, 2013 Membership No. 90217
