We have audited the standalone financial statements
of GANESH HOUSING CORPORATION LIMITED (“the
company”), which comprise the Balance Sheet as at 31st
March 2025, and the Statement of Profit and Loss (including
other Comprehensive Income), and the Statement of
changes in Equity, and the Statement of Cash Flow for the
year then ended, and notes to the financial statements,
including summary of material accounting policies and
other explanatory information (hereinafter referred to as
“Standalone financial statement”).
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone financial statements give the information
required by the Companies Act, 2013 (the “Act”) in
the manner so required and give a true and fair view
in conformity with the Indian Accounting Standards
prescribed under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015,
as amended, (“Ind AS”) and other accounting principles
generally accepted in India, of the state of affairs of the
Company as at March 31, 2025, and its profit (including
other comprehensive income), changes in equity and its
cash flows for the year ended on that date.
Basis for opinion
We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of
the Act. Our responsibilities under those SAs are further
described in the Auditor's Responsibilities for the Audit of
the Standalone Financial Statements section of our report.
We are independent of the Company in accordance with
the Code of Ethics issued by the Institute of Chartered
Accountants of India together with the ethical requirements
that are relevant to our audit of the standalone financial
statements under the provisions of the Act and the
Rules there under, and we have fulfilled our other ethical
responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide
a basis for our opinion on the Standalone Financial
Statements.
Key audit matters
Key audit matters (‘KAM') are those matters that, in our
professional judgment, were of most significance in our
audit of the standalone financial statements of the current
period. These matters were addressed in the context of our
audit of the standalone financial statements as a whole,
and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. We have determined
the matter described below to be the key audit matters to
be communicated in our report.
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The key audit matters
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How our audit addressed the key audit matter
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Property plant and Equipment & Capital work in progress -
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refer note 1 & 2 to the standalone financial statements
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As at March 31, 2025, the company has carrying amount
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Our audit procedures included the following:
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of Property plant and Equipment ' 21153.26 lakh, capital
work in progress ' 35981.61 lakh,
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We obtained and read management's assessment for
impairment.
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Assessment of the recoverable amount of Property plant
and Equipment & Capital work in progress has been
identified as a key audit matter due to:
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We obtained an understanding of the company's
capitalization policy and assessed for compliance
with the relevant accounting standards.
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Significance of the carrying amount of these balances.
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We obtained understanding, evaluated the design and
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The assessment requires management to make
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tested the operating effectiveness of controls related
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significant estimates concerning the estimated future
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to capital expenditure and capitalisation of assets.
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cash flows, qualitative assessments of the status of the
project and its future depending on balance work to
be performed or approvals to be received, demands
raised by the customers, associated discount rates
and growth rates based on management's view of
future business prospects.
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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
generated properties from capital-work-in-progress
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Changes to any of these assumptions could lead
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located in the nearby vicinity of each project.
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to material changes in the estimated recoverable
amount, impacting both potential impairment charges
and potential reversals of impairment.
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Verifying the NRV assessment and comparing the
estimated construction costs to complete each
development with the Company's updated budgets.
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The Company is in the process of executing SEZ
projects towers. Since these projects take a substantial
period of time to get ready for intended use and due
to their materiality in the context of the Balance Sheet
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We obtained understanding on management
assessment relating to progress of projects and their
intention to bring the asset to its intended use.
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of the Company, this is considered to be an area
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We performed an understanding and evaluation of
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which had the significant effect on the overall audit
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the system of internal control over the capital work in
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strategy and allocation of resources in planning and
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progress, with reference to identification and testing
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completing our audit
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of key controls.
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We assessed the progress of the project and the
intention and ability of the management to carry
forward and bring the asset to its state of intended
use.
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The key audit matters
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How our audit addressed the key audit matter
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Impairment of Investments in subsidiaries - projects (as described in note 4 of the standalone Ind AS financial
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statements)
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Assessment of impairment of investment in subsidiaries:
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Our audit procedures to assess recoverability include the
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The carrying amount of the investments in subsidiaries
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following:
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held at costless impairment represents 31.16% of the
Company's total assets respectively.
The Company has investments in subsidiaries. These
investments are carried at costless any diminution in
value of such investments. The investments are analyzed
for impairment at each reporting date by comparing the
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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
(approximating their minimum recoverable amount)
were more than their carrying amount.
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carrying value of investments in the Company's books with
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For the investments where the carrying amount
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the net assets of the relevant subsidiaries' balance sheet.
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exceeded the Company's share in net asset value, we
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Further, the Company assesses the projected cash flows
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compared the carrying amount of the investment with
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of the real estate projects in these underlying entities. This
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the projected cash flow and profitability. This is based
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involves significant estimates and judgment, due to the
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on the approved business plans of the subsidiaries.
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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.
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Evaluating, through an analysis of internal and
external factors, whether there were any indicators of
impairment in accordance with Ind AS 36.
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The impairment assessment of these investments is
complex and highly judgmental due to the significant
estimation required to determine the Value-In-Use (VIU).
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Testing the mathematical accuracy of the
management's assessment.
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In particular, the determination of the VIU is sensitive to
significant assumptions, such as changes in the discount
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Considering the adequacy of disclosures in respect of
the investment in subsidiaries.
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rate, revenues, operating margin, which are affected by
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Evaluating the significant assumptions used in the
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expectations about future market or economic conditions
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management's assessment like the operating margins,
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and other challenges.
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discount rates, revenue growth rates, wherever
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The company has three subsidiaries.
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required by performing independent calculations and
sensitivity analysis.
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Considering the impairment assessment involves
significant assumptions and judgment, this is considered
a key audit matter.
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The company has three subsidiaries. Two subsidiaries
are profit-making, and the question of impairment does
not arise. The third subsidiary was incorporated only
four years ago, and it has not started any commercial
activity and does not have any fixed assets.
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The key audit matters
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How our audit addressed the key audit matter
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Accuracy and completeness of disclosure of related party transactions and compliance with the provisions
of Companies Act 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as
amended (SEBI (LODR) 2015’) (as described in note 42 of the standalone financial statements)
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We identified the accuracy and completeness of disclosure
of related party transactions as set out in respective notes
to the consolidated financial statements as a key audit
matter due to:
the significance of transactions with related parties
during the year ended March 31,2025.
Related party transactions are subject to the
compliance requirement under the Companies Act
2013 and SEBI (LODR) 2015.
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Our audit procedures in relation to the disclosure of related
party transactions included the following:
• We obtained an understanding, evaluated the design
and tested operating effectiveness of the controls
related to capturing of related party transactions and
management's process of ensuring all transactions
and balances with related parties have been disclosed
in the standalone financial statements.
• We obtained an understanding of the company's
policies and procedures in respect of evaluating
arms-length pricing and approval process by the
audit committee and the board of directors.
• We agreed the amounts disclosed with underlying
documentation and read relevant agreements,
evaluation of arms-length by management, on
a sample basis, as part of our evaluation of the
disclosure.
• We assessed management evaluation of compliance
with the provisions of Section 177 and Section 188 of
the companies Act 2013 and SEBI (LODR) 2015.
• We evaluated the disclosures through reading
statutory information, books and records and other
documents obtained during the course of our audit.
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Evaluation of uncertain tax positions
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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.
Refer to Note 44 to the financial statements.
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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 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.
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Information Other than the Financial Statements and In connection with our audit of the standalone financial
Auditor’s Report Thereon statements, our responsibility is to read the other
The Company's management and Board of Directors are information and, in doing s°, consider whether the °ther
responsible for the other information. The other information information is materially inconsistent with the standalone
comprises the information included in the Company's financial statements, or our knowledge °iotained in the
annual report but does not include the consolidated audit or otherwise appears to be materially instated. |f,
financial statement, standalone financial statements and based on the work we have performed, we conclude that
our auditors' report thereon there is a material misstatement of this other information;
we are required to report that fact. We have nothing to
Our opinion on the standalone financial statements does report in this regard
not cover the other information and we do not express any
form of assurance conclusion thereon.
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Management’s responsibility for the standalone
financial statements
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Companies Act,
2013 (“the Act”) with respect to the preparation of these
standalone financial statements that give a true and fair view
of the financial position, financial performance including
other comprehensive income, cash flows and changes in
equity of the Company in accordance with the accounting
principles generally accepted in India including the Indian
Accounting Standards (Ind AS) specified under section
133 of the Act, read with relevant rules issued there under.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting
policies; making judgments and estimates that are
reasonable and prudent; and design implementation and
maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the
preparation and presentation of the standalone financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements,
management and the Board of Directors are responsible
for assessing the Company's ability to continue as a going
concern, disclosing, as applicable, matters related to
going concerned and using the going concern basis of
accounting unless management either intends to liquidate
the Company or to cease operations or has no realistic
alternative but to do so.
Board of Directors is also responsible for overseeing the
Company's financial reporting process.
Auditor’s responsibilities for the audit of the standalone
financial statements
Our objectives are to obtain reasonable assurance about
whether the standalone financial statements as a whole
are free from material misstatement, whether due to fraud
or error and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted
in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the
basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement
of the standalone financial statements, whether due to
fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under Section
143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the company has
adequate internal financial controls with reference
to standalone financial statements in place and the
operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
• Conclude on the appropriateness of management's
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company's ability to continue as a going concern.
If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor's report
to the related disclosures in the standalone financial
statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditors'
report. However, future events or conditions may
cause the Company to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance
with a statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the standalone financial
statements of the current period and are therefore the key
audit matters. We describe these matters in our auditors'
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated
in our report because the adverse consequences of doing
so would reasonably be 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 of the Act, We give in the Annexure - A,
a statement on the matters specified in paragraphs 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 best of 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 the Company
so far as it appears from our examinations of
those books;
c. The Balance Sheet, Statement of Profit and Loss
including Other Comprehensive Income, the
Cash Flow Statement and Statement of Changes
in Equity dealt with by this report are in agreement
with the relevant books of account;
d. In our opinion, the aforesaid standalone financial
statements comply with the Indian Accounting
Standards specified under section 133 of the
Act, read with relevant rules issued there under;
e. On the basis of written representations received
from the directors and on record by the Board of
Directors, none of the directors is disqualified as
on 31st March, 2025 from being appointed as a
director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal
financial controls over the financial reporting of
the Company and the operating effectiveness
of such controls, refer to our separate report in
Annexure - B.
g. With respect to the other matters to be included
in the Auditor's Report in accordance with the
requirements of section 197(16) of the Act, as
amended, In our opinion and to the best of our
information and according to the explanations
given to us, the remuneration paid by the
Company to its directors during the year is in
accordance with the provisions of section 197 of
the Act.
h. With respect to the other matters to be included
in the Auditor's Report in accordance with Rule
11 of the Companies (Audit and Auditors) Rules,
2014, as amended, in our opinion and 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 2025
on its financial position in its standalone
financial statements as referred to in Note
No. 44 [A to I] to the standalone financial
statements.
ii. The company did not have any long-term
contracts including derivative contracts for
which there were any material foreseeable
losses.
iii. There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund by
the Company during the year ended 31st
March 2025.
iv. (a) The Management has represented that,
to the best of its knowledge and belief,
other than as disclosed in the notes to the
accounts, no funds (which are material
either individually or in the aggregate) have
been advanced or loaned or invested (either
from borrowed funds or share premium or
any other sources or kind of funds) by the
Company to or in any other person or entity,
including foreign entity (“Intermediaries”),
with the understanding, whether recorded
in writing or otherwise, that the Intermediary
shall, whether, directly or indirectly lend or
invest in other persons or entities identified
in any manner whatsoever by or on behalf
of the Company (“Ultimate Beneficiaries”) or
provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that,
to the best of its knowledge and belief,
other than as disclosed in the notes to the
accounts, no funds (which are material
either individually or in the aggregate) have
been received by the Company from any
person or entity, including foreign entity
(“Funding Parties”), with the understanding,
whether recorded in writing or otherwise,
that the Company shall, whether, directly or
indirectly, lend or invest in other persons or
entities identified in any manner whatsoever
by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries;
(c) Based on the audit procedures that
have been considered reasonable and
appropriate in the circumstances and
based on the test checks carried out by
the auditor, nothing has come to our notice
that has caused us to believe that the
representations under sub-clause (i) and (ii)
of Rule 11(e), as provided under (a) and (b)
above, contain any material misstatement.
(Refer note no. 50)
v. As stated in Note no. 58 to the Standalone
Financial Statements:
The final dividend proposed in the previous year,
declared and paid by the Company during the
year is in accordance with Section 123 of the Act,
as applicable.
The Board of Directors of the Company has
proposed a final dividend for the year which is
subject to the approval of the members at the
ensuing Annual General Meeting. The amount of
dividend proposed is in accordance with section
123 of the Act, as applicable.
vi. Based on our examination, which included test
checks, the Company has used accounting
software systems for maintaining its books of
accounts for the financial year ended March 31,
2025 which have the feature of recording audit
trail (edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software systems. Further,
during the course of our audit we did not come
across any instance of the audit trail feature
being tampered with and the audit trail has been
preserved by the Company as per the statutory
requirements for record retention.
FOR, J M PARIKH & ASSOCIATES
CHARTERED ACCOUNTANTS
FRN:- 118007W
JATIN PARIKH
PARTNER
PLACE:- AHMEDABAD MEMBERSHIP NO.:- 033811
DATE :- 14/05/2025 UDIN: 25033811BMKRYJ6041
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