Ansal Housing auditor leaves 16 subsidiaries unreviewed

Ansal Housing Limited’s auditor did not review the interim results of 16 subsidiaries for the quarter and six months ended September 30, 2026, which together reported Rs 139.17 crore of assets and a six-month loss after tax of Rs 7.92 crore. Management said the unreviewed statements were not material to Ansal Housing, and the auditor’s conclusion was not modified.

What did Ansal Housing’s auditor not review?

The auditor did not review interim financial results for 16 Ansal Housing subsidiaries included in the consolidated statement for the quarter and six months ended September 30, 2026. Their own auditors had not reviewed those interim financial statements, according to the review report signed on November 14, 2026.

The 16 subsidiaries reported aggregate revenue of Rs 2.53 crore for the quarter ended September 30, 2026 and Rs 7.26 crore for the six months ended that date. They reported net losses after tax of Rs 3.87 crore for the quarter and Rs 7.92 crore for the half year; total comprehensive losses were the same amounts in both periods.

The subsidiaries had combined assets of Rs 139.17 crore at September 30, 2026 and generated a six-month cash outflow of Rs 3.00 crore. The report does not identify the individual contribution of each of the 16 subsidiaries to those figures, although it lists group entities including A.R. Infrastructure Private Limited, Geo Connect Limited, Housing and Construction Lanka Private Limited and Wrangler Builders Private Limited.

Management told Dewan P N Chopra & Co that the interim financial statements of the 16 subsidiaries were not material to Ansal Housing. The auditor stated that its conclusion was not modified for this matter, while also recording that the subsidiaries’ interim financial statements had not been reviewed by their auditors.

What information was absent for Ansal Housing’s associate?

Ansal Housing’s consolidated statement excluded the group’s share of net profit or loss from one associate because the associate’s interim financial information had not been furnished to the auditor for the quarter and six months ended September 30, 2026. The filing does not name the associate or quantify the excluded share of profit or loss.

This differs from the disclosure for the 16 subsidiaries, whose aggregate six-month revenue of Rs 7.26 crore and loss after tax of Rs 7.92 crore were included in the review report. For the associate, no revenue, asset, cash-flow, ownership or profit-and-loss figure was disclosed, so the filing does not permit a numerical assessment of the missing contribution.

Management represented that the associate’s unavailable interim information was not material to Ansal Housing, and the auditor did not modify its conclusion. The absence therefore relates specifically to the group’s share of the associate’s results for the September 2026 quarter and half year, rather than to a disclosed value carried in the consolidated results.

Did the auditor modify its conclusion on Ansal Housing’s results?

No, the auditor did not modify its review conclusion on Ansal Housing’s consolidated unaudited financial results for the period ended September 30, 2026. Dewan P N Chopra & Co said nothing had come to its attention to indicate that the statement did not make disclosures required under Regulation 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015, or contained a material misstatement.

The engagement was a review rather than a full audit. The auditor said an interim review primarily involves enquiries of financial and accounting personnel and analytical procedures, and is substantially less extensive than an audit conducted under Standards on Auditing; accordingly, it did not issue an audit opinion on the September 2026 consolidated results.

The report separately addressed one subsidiary whose figures were reviewed by another auditor. That subsidiary reported revenue of Rs 10.84 crore for the September 2026 quarter and Rs 20.49 crore for the six months, with losses after tax of Rs 1.07 crore and Rs 0.76 crore respectively, assets of Rs 140.95 crore and six-month cash outflow of Rs 2.39 crore.

Ansal Housing’s auditor based its conclusion on that subsidiary’s amounts solely on the other auditor’s report and its own review procedures. This differs from the 16-subsidiary matter because those entities’ interim financial statements had not been reviewed by their auditors, while the separate subsidiary’s interim results had been reviewed by another auditor.

How do the unreviewed subsidiaries compare with Ansal Housing’s group figures?

The 16 unreviewed subsidiaries’ assets of Rs 139.17 crore equalled about 10.75% of Ansal Housing’s consolidated assets of Rs 1,294.17 crore at September 30, 2026. Their six-month revenue of Rs 7.26 crore was below the group’s reported revenue from operations of Rs 80.72 crore for the same period.

Their combined six-month loss after tax of Rs 7.92 crore compares with Ansal Housing’s consolidated loss after tax of Rs 13.01 crore for the six months ended September 30, 2026. The group’s loss after tax was Rs 6.91 crore in the corresponding six months ended September 30, 2025, meaning the reported consolidated loss increased by Rs 6.10 crore year on year.

The figures are not a direct attribution of the consolidated loss to the 16 subsidiaries because the filing does not disclose consolidation eliminations or entity-level adjustments. However, the disclosed comparison shows that the unreviewed subsidiaries were loss-making in the first six months of the financial year while the group also reported a consolidated loss.

Ansal Housing’s consolidated cash and cash equivalents were Rs 2.73 crore at September 30, 2026, down from Rs 8.74 crore at March 31, 2026. Operating activities generated Rs 39.40 crore during the six months, while financing activities used Rs 41.18 crore; the filing does not state how much of the group’s cash movement came from the 16 unreviewed subsidiaries.

What other matters did the auditor highlight?

The auditor drew attention to the Samyak Projects Private Limited matter in Note 3, pending litigation in Notes 2 and 4, net recoverable value matters in Note 6, and balance confirmations and reconciliations in Note 8. Its conclusion was not modified in relation to those matters, and management said probable litigation liabilities would not have a material impact beyond provisions already created.

The report also said the auditor relied on management and technical personnel regarding ongoing-project status, income and expense recognition, and the realisable value of costs incurred. External confirmations were sent to banks and parties, but certain balances remained subject to confirmation or reconciliation as of the November 14, 2026 report.

Conclusion

Ansal Housing’s September 2026 consolidated review contained a defined scope limitation: 16 subsidiaries with Rs 139.17 crore of assets had interim financial statements that were not reviewed by their auditors, while one associate’s interim information was not furnished. The 16 entities reported a Rs 7.92 crore half-year loss, but management considered both the subsidiary statements and the absent associate information immaterial, and the auditor did not modify its conclusion.

The next point to watch is whether future interim or annual reporting provides reviewed information for the 16 subsidiaries and a disclosed result for the unnamed associate. The filing also leaves litigation appeals, party-balance confirmations, reconciliations and technical assessments of project values unresolved, with management stating that any resulting adjustments are not expected to be material.