To the Members of Anant Raj Limited
1) REPORT ON THE STANDALONE FINANCIAL STATEMENTS
We have audited the accompanying standalone financial statements of Anant Raj Limited("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information.
2) MANAGEMENTS RESPONSIBILITY FOR THE STANDALONE FINANCIAL STATEMENTS
The Companys Board of Directors is responsible for the matters stated in Section134 (5) of the Companies Act 2013 ("the Act") with respect to the preparationof these standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and free from materialmisstatement whether due to fraud or error.
3) AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143 (10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditors judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Companys preparation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstance. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by theCompanys Directors as well as evaluating the overall presentation of the financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2016 and its profit and its cash flows for the year ended on that date.
5) REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
As required by the Companies (Auditors Report) Order 2016 (the Order) issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in the "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order.
As required by section 143 (3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit. b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books. c) The Balance Sheet the Statement of Profit and Loss andthe Cash Flow Statement dealt with by this Report are in agreement with the books ofaccount; d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e) On the basis of written representations received fromthe directors as on March 31 2016 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2016 from being appointed as a director interms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
g) With respect to the other matters to be included in the
Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us:
i) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note No. 31 39 and 41 to the financialstatements.
ii) The Company did not have any material foreseeable losses on long-term contractsincluding derivative contracts. iii) There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITORS REPORT
(Referred to in paragraph 5 under the heading Report on Other Legal andRegulatory Requirement of our report of even date to the financial statements of theCompany for the year ended March 31 2016) i) In respect of fixed assets: (a) The Companyis maintaining proper records showing full particulars including quantitative details andsituation of fixed assets.
(b) As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. According to the informationand explanations given to us no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company except one lease agreement is not registered in the nameof the Company. ii) The inventory includes land buildings construction work inprogress construction and development material development rights spares werephysically verified by the management at reasonable intervals during the year. Thediscrepancies noticed on physical verification of inventory as compared to book recordswere not material and have been properly dealt with in the books of account. iii) TheCompany has granted loans to subsidiaries covered in the register maintained under section189 of the Act: (a) In our opinion terms and conditions on which the loans had beengranted to the aforesaid subsidiaries were not prima facie prejudicial to the interestsof the Company.
(b) The receipts of principal and interest whenever recoverable during the year areas per mutually agreed stipulations.
(c) There are no overdue amounts in respect of aforesaid loans. iv) In our opinion andaccording to the information and explanations given to us the Company has complied withthe provisions of section 185 and 186 of the Act in respect of loans investmentssecurity and guarantee made. v) The Company has not accepted any deposits within themeaning of sections 73 to 76 or any other relevant provisions of the Act. vi) We havebroadly reviewed the cost records maintained by the Company pursuant to the Rules made bythe Central Government for the maintenance of cost records under sub-section (1) ofSection 148 of the Act in respect of activities carried on by the Company and are of theopinion that prima facie the prescribed accounts and records maintained. However wehave not made a detailed examination of the cost records with a view to determine whetherthey are accurate or complete. vii) In respect of statutory dues: a) According to theinformation and explanations given to us and the records of the Company examined by us inour opinion the Company has generally been regular in depositing the undisputed statutorydues including provident fund employees state insurance income tax sales taxwealth tax service tax custom duty excise duty value added tax cess and otherstatutory dues as applicable with the appropriate authorities except for a few instancesof slight delay in deposits. Further no undisputed amounts payable in respect of theabove were in arrears as at March 31 2016 for a period of more than six months from thedate they become payable. b) The dues outstanding in respect of service tax value addedtax income tax and excise duty on account of any dispute are as follows:
|Name of the Statute ||Nature of dues ||Amount (Rs) ||Period to which the amount relates ||Forum where dispute is pending ||Present status as the on the date of this Report |
|Haryana General Sales tax Act 1973 Haryana Value Added tax Act 2003 ||Sales tax ||8550807* ||FY 2002-03 ||Honble High Court of Punjab & Haryana Chandigarh ||Writ petition filed by the Company is pending before the Honble High Court of Punjab & Haryana Chandigarh |
| ||Value added tax ||13164978* ||FY 2003-04 ||Honble High Court of Punjab & Haryana Chandigarh ||Writ petition filed by the Company is pending before the Honble High Court of Punjab & Haryana Chandigarh |
|Income tax Act 1961 ||Income tax ||27912346# ||AY 1997-98 1998-99 1999-2000 ||Honble High Court of Delhi Delhi ||Appeal filed by the Company is pending before Honble High Court of Delhi New Delhi |
|Income tax Act 1961 ||Income tax ||9070735* ||A.Y. 2006-07 ||Income tax Appellate Tribunal New Delhi. ||Appeal filed by the Company is pending before the Income tax Appellate Tribunal New Delhi. |
|Income tax Act 1961 ||Income tax ||1404500 ||A.Y. 2007-08 ||The Commissioner of income tax Appeals (CIT) New Delhi. ||Appeal filed by the Company is pending before CIT (Appeals) New Delhi. |
|Income tax Act 1961 ||Income tax ||90000 ||A.Y. 2008-09 ||The CIT New Delhi. ||Appeal filed by the Company is pending before CIT (Appeals) New Delhi. |
|Income tax Act 1961 ||Income tax ||13981557 ||A.Y. 2009-10 ||The CIT New Delhi. ||Appeal filed by the Company is pending before CIT (Appeals) New Delhi. |
|Income tax Act 1961 ||Income tax ||516718 ||A.Y. 2010-11 ||The CIT New Delhi. ||Appeal filed by the Company is pending before CIT (Appeals) New Delhi. |
|Income tax Act 1961 ||Income tax ||661930 ||A.Y . 2011-12 ||The CIT New Delhi. ||Appeal filed by the Company is pending before CIT (Appeals) New Delhi. |
|Income tax Act 1961 ||Income tax ||356705650 ||A.Y . 2013-14 ||The CIT New Delhi. ||Appeal filed by the Company is pending before CIT (Appeals) New Delhi. |
|The Central Excise Act 1944 ||Excise duty ||2980380 ||FY 2009-10 ||Appellate Tribunal New Delhi. ||Appeal filed by the Company is pending before the Income tax Appellate Tribunal New Delhi. |
* Amounts are net of payments made and without considering interest for the overdueperiod if any as may be levied if demand as raised is upheld.
# Excluding interest and additional tax viii) In our opinion and according to theinformation and explanations given to us the Company has not defaulted in repayment ofdues to banks financial institutions and debenture holders. The Company has not borrowedfunds from Government. ix) The Company did not raise any money by way of initial publicoffer or further public offer. As informed to us the term loans were applied for thepurposes for which those are raised.
x) Based upon the audit procedures performed and the information and explanations givenby the management no fraud by the Company or on the Company by its officers or employeeshas been noticed or reported during the course of our audit. xi) According to theinformation and explanations give to us and based on our examination of the records of theCompany the managerial remuneration has been paid/provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct. xii) In our opinion the Company is not a nidhi company.
xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company all transactions with the related parties arein compliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
xiv) The Company has not made any preferential allotment or private placement of sharesduring the year under review.
xv) The Company has not entered into any non-cash transactions with directors orpersons connected with him.
xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
"ANNEXURE B" TO INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of thesection 143 of the Act
We have audited the internal financial controls over financial reporting of Anant RajLimited ("the Company") as of March 31 2016 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for laying down and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance note on Audit of Internal Financial Controls Over Financial Reporting(Guidance Note) issued by the Institute Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to Companys policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Standards of Auditing to the extent applicable to an audit of internal financialcontrols and the Guidance Note both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain the reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgment including the assessment of the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A Companys internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A Companys internal financial control overfinancial reporting includes those policies and procedures that
(i) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;
(ii) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the Company are being madeonly in accordance with authorizations of management and directors of the Company; and
(iii) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Companys assets that could havea material effect on the standalone financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of its inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not to be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.
|BA-5 Stutee Building ||B. Bhushan& Co. |
|Bank Street Karol Bagh ||Chartered Accountants |
|New Delhi - 110005 ||Firm Registration No. 001596N |
| ||By the hand of |
| ||Kamal Ahluwalia |
|May 30 2016 ||Partner |
|New Delhi ||Membership No.093812 |