To the Members of
ARIHANT FOUNDATIONS & HOUSING LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of ARIHANT FOUNDATIONS &HOUSING LIMITED ("the Company") which comprise the Balance Sheet as at December31 2014 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act 1956 ("the Act") (which continue to beapplicable in respect of Section 133 of the Companies Act 2013 in terms of GeneralCircular 15/2013 dated September 13 2013 of the Ministry of Corporate Affairs). Thisresponsibility includes the design implementation and maintenance of internal controlrelevant to the preparation and presentation of the financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
a) in the case of the Balance Sheet of the state of affairs of the Company as atDecember 31 2014;
b) in the case of the Profit and Loss Account of the profit for the year ended on thatdate; and
c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.
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 of India in terms of sub-section (4A) of section 227 ofthe Act we give in the Annexure a statement on the matters specified in paragraphs 4 and5 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 ourknowledge 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 theCompany so far as appears from our examination of those books.
c. the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d. in our opinion the Balance Sheet and the Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in sub-section (3C) of section211 of the Act (which continue to be applicable in respect of Section 133 of the CompaniesAct 2013 in terms of General Circular 15/2013 dated September 13 2013 of the Ministry ofCorporate Affairs).
e. on the basis of written representations received from the directors as on December31 2014 and taken on record by the Board of Directors none of the directors isdisqualified as on December 31 2014 from being appointed as a director in terms ofclause (g) of subsection (1) of section 274 of the Companies Act 1956.
| ||For B.P.JAIN & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||Firm Reg No. 050105S |
| ||Sd/- |
| ||CA. DEVENDRA KUMAR BHANDARI |
| ||Partner |
| ||Membership No.: 208862 |
|Place: Chennai || |
|Date: 27.02.2015 || |
Re: M/s ARIHANT FOUNDATIONS AND HOUSING LTD
Annexure to the Auditors' report
(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'of our report of even date)
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The fixed assets have been physically verified by the management at reasonableinterval and no material discrepancies are noticed on such verification.
(c) The fixed assets disposed off during the year in our opinion do not constitute asubstantial part of the fixed assets of the Company and such disposal has in our opinionnot affected the going concern status of the Company.
(ii) (a) As explained to us the stock of construction materials has been physicallyverified at periodic intervals and no significant discrepancies has been noticed on suchverification during the year.
(b) The procedure of physical verification of stock of building material followed bythe management is reasonable and adequate in relation to the size of the company andnature of its company.
(c) The company does not maintain stock records of raw materials. We are of the opinionthat the valuation of the stock of building material is as per normally acceptedaccounting principles. The company has not identified slow moving building materialsseparately.
(iii) (a) The company has granted loan to five companies covered in the registermaintained under section 301 of the companies Act 1956 The maximum amount involved duringthe year was Rs.472708834/- and the year-end balance of loans granted to such partieswas Rs. 284062315/-.
(b) In our opinion the rate of interest and other terms and conditions of such loansare not prima facie prejudicial to the interest of the company.
(c) The parties have repaid the principal amounts and have also been regular in thepayment of interest to the company.
(d) Where the overdue amount exceeds rupees one lakh the company has taken necessarysteps to recover the amount and interest thereon.
(e) The company had taken loan from three parties covered in the register maintainedunder section 301 of the companies Act 1956. The maximum amount involved during the yearwas Rs.547919840/- and the year-end balance of loans taken from such parties wasRs.522645900/-.
(f) In our opinion the rate of interest and other terms and conditions of the loantaken by the company secured and unsecured are not prima facie prejudicial to theinterest of the company.
(g) The repayment of principal and interest thereon to the concerned parties is alsoregular.
(iv) In our opinion and according to information and explanation given to us thecompany has an adequate internal control procedure commensurate with the size and natureof business for the purchase of stores and raw materials plant & machinery equipmentand other assets for the sale of finished stocks. During the course of our audit we havenot observed any continuing failure to correct major weaknesses in internal control systemof the company.
(v) (a) In our opinion and according to the information and explanations given by themanagement particulars of all contracts and arrangements referred to in section 301 ofthe Companies Act 1956 have been entered in the register required to be maintained underthat section.
(b) In our opinion and according to the information and explanations given to us thetransactions made in pursuance of such contracts or arrangements entered in the registermaintained under section 301 of the companies Act 1956 and exceeding the value of rupeesfive lakhs in respect of any party during the year have been made at a price which arereasonable having regard to the prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanation given to us thecompany has not accepted deposits from the public during the year. Therefore theprovision of clause 4(vi) of the Order is not applicable to the Company.
(vii) In our opinion the company has an internal audit system commensurate with sizeand nature of its business.
(viii) We have broadly reviewed the cost records maintained by the company pursuant tothe rules made by the Central Government for the maintenance of cost records by theCompany under section 209 (1) (d) of the Companies Act 1956 and are of the opinion thatprima facie the cost records have been maintained by the company. We have however not madea detailed examination of the same as the same has been certified by a cost accountant.
(ix) According to the information and explanations given to us and on the basis of ourexamination of books of account in our opinion
a) The Company is regular in depositing undisputed statutory dues including InvestorEducation and protection fund Income Tax Wealth Tax Service Tax Cess Sales tax VATExcise duty and any other material statutory dues during the year with the appropriateauthorities except in case of following:
Statement of Arrears of statutory dues outstanding for more than six months.
|Name of statue ||Nature of the dues ||Amount( Rs.) ||Period to which the amount relates ||Due Date ||Date of Payment |
|TN Vat Act 2006 ||Vat Payable ||Rs.10000/- ||2013-14 ||20-07-2013 ||Not paid |