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Arihant Foundations & Housing Ltd.

BSE: 531381 Sector: Infrastructure
NSE: ARIHANT ISIN Code: INE413D01011
BSE 00:00 | 24 May 39.50 0
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OPEN

41.40

HIGH

41.40

LOW

39.45

NSE 00:00 | 21 May 39.00 0
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OPEN

39.70

HIGH

39.90

LOW

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OPEN 41.40
PREVIOUS CLOSE 39.50
VOLUME 1070
52-Week high 61.90
52-Week low 36.55
P/E 19.46
Mkt Cap.(Rs cr) 34
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 41.40
CLOSE 39.50
VOLUME 1070
52-Week high 61.90
52-Week low 36.55
P/E 19.46
Mkt Cap.(Rs cr) 34
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Arihant Foundations & Housing Ltd. (ARIHANT) - Auditors Report

Company auditors report

TO

THE MEMBERS OF

ARIHANT FOUNDATIONS & HOUSING LIMITED.

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of ARIHANTFOUNDATIONS & HOUSING LIMITED ("the company") which comprise theBalance Sheet as at 31 March 2017 the Statement of Profit and Loss and the Cash flowstatement for the year then ended and a summary of significant accounting policies andother explanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese 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 the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial control 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 are free from materialmisstatement whether due to fraud or error.

Auditor's 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 accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions 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 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 financial control relevant to the Company's preparation of thefinancial statements that give true and fair view in order to design audit procedures thatare appropriate in the circumstances but not for the purpose of expressing an opinion onwhether the Company has in place an adequate internal financial controls system overfinancial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

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 2017 and its Profit and its Cash Flow for the year ended on that date.

Report on other Legal and Regulatory Requirements 1. As required by the Companies(Auditor's Report) Order 2016 ("the Order") issued by the Central Government ofIndia 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 the paragraph 3 & 4 ofthe Order to the extent applicable.

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 bestof 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 theCompany so far as it appears from our examination of those books;

c) Since the Company does not have branches the report on the account of branchofficesaudited by other auditor under sub-section (8) of the act is not applicable;

d) The Balance Sheet the Statement of Profit and Loss and the Cash FlowStatementdealt with by this Report are in agreement with the books of account The Companyhas no branches;

e) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

f) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct ; and

g) 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".

h) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the companies (Audit and Auditors) Rules 2014 in our opinion and to thebest of our information and according to the explanations given to us :

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements.

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses

iii. there has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company; and.

iv. The Company has provided requisite disclosures in its standalone financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8 November2016 to 30 December2016 and these are in accordance with books ofaccounts maintained by the Company. Refer to Note 2.17 to the Standalone FinancialStatements.

For M/S. B.P JAIN & CO

CHARTERED ACCOUNTANTS

FRN: 050105S

Sd/-

DEVENDRA KUMAR BHANDARI

PARTNER

M.NO : 208862

Place: Chennai

Date:30-05-2017

"ANNEXURE-A" TO THE AUDITORS' REPORT

The Annexure referred to in our Independent Auditor's Report to the members of thecompany on the financial statements for the year ended 31 March 2017 we Report that:

i. (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) These fixed assets have been physically verified by the management at reasonableintervals; and no material discrepancies were noticed on such verification and if so andthe same have been properly dealt with in the books of account;

(c) According to the informationand explanations given to us and on basis of ourexamination of the records of the companythe title deeds of immovable properties are heldin the name of the company.

ii. As explained to us the stock of construction materials has been physicallyverified by the management at reasonable intervals; and no material discrepancies werenoticed on such verification and if so and the same have been properly dealt with in thebooks of account.

iii. The company has granted loans to four bodies corporate covered in the registermaintained under Section 189 of the Companies Act 2013 ("the Act").

a. In our opinion the rate of interest and other terms and conditions on which theloans had been granted to the bodies corporate listed in the register maintained underSection 189 of the Act were not prima facie prejudicial to the interest of the Company.

b. During the year in respect of the aforesaid loans in some of the loans there hasbeen no recovery towards principal in the absence of any terms; we are unable to commenton the regularity of recovery of principal amount.

c. Since there was no repayment schedules we are unable to comment whether the amountwas overdue for more than ninety days.

iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and I86 of the Companies act2013. In respect of loans investments guarantees and security.

v. In our opinion and according to information and explanations given to us thecompany has not accepted any deposits; hence the provision of section 73 to 76 &directives issued by Reserve Bank of India are not applicable to the company.

vi. The maintenance of cost records specified by the Central Government undersub-section (1) of section 148 of the Companies Act will not apply to the company. Hencemaintenance of cost accounts and records is not required.

vii. (a) According to the information and explanations given to us and on the basis ofexamination of books of accounts there are no outstanding dues undisputed statutory duesincluding provident fund employees' state insurance income-tax sales- tax wealth taxservice tax duty of customs duty of excise value added tax cess and any otherstatutory dues with the appropriate authorities and there are no statutory dues for morethan six months from the date they became payable.

(b) According to information and explanations given to us the following dues of incometax sales tax duty of excise service tax and value added tax have not been deposited bythe Company on account of disputes:

Name of the Statute Nature of Dues Amount (in Rs) Period to which the amount relates Forum where dispute is pending.
Income tax Act 1961 Income tax 7638692/- Assessment year:1999-2000 CIT Appeals
Income tax Act 1961 Income tax 7183310/- Assessment year:2011-12 CIT Appeals
Income tax Act 1961 Income tax 1499288/- Assessment year:2012-13 CIT Appeals
Income tax Act 1961 Income tax 1519250/- Assessment year:2013-14 CIT Appeals
Income tax Act 1961 Income tax 1371638/- Assessment year:2004-05 High Court of Madras
Income tax Act 1961 Income tax 5323956/- Assessment year:2005-06 High Court of Madras
Income tax Act 1961 Income tax 9558275 Assessment year:2005-06 Income Tax Appellate Tribunal
Service tax Service tax 2316081/- June 2005 to March 2007. CESTAT Chennai.

viii. The company has not defaulted in repayment loans to the banks financialinstitutionGovernment and to the debentures holders.

ix. The company has not raised the money by way of initial public offer and thecompany has not taken any term loans during the yearhence the Para 3(ix) of the Order isnot applicable to this company.

x. Based upon the audit procedures performed & explanations given by themanagement we report that there was no fraud by the company or on the company by itsofficers or employees has been noticed or reported during the year.

xi. According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany isnot a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. In our opinion all transactions with the related parties are in compliance withsection 177 & 188 of the Companies Act 2013 and the details have been disclosed inthe financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of therecords of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi. In our opinion the company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For M/S.B.PJAIN & CO
CHARTERED ACCOUNTANTS
FRN : 050105S
Sd/-
DEVENDRA KUMAR BHANDARI
PARTNER
M.NO: 208862
Place: Chennai
Date:30-05-2017.

"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements ofArihant Foundations & Housing Limited.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

"Annexure B" to the Independent Auditor's Report of even date on theFinancial Statements ofArihant Foundations & Housing Limited.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting ofArihantFoundations & Housing Limited ("the Company") as of March 31 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing 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 Reportingissued by the Institute of Chartered Accountants of India". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit.

We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and theStandards on Auditing issued by ICAI and deemed to be prescribed under section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting 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 financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

iii. Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the 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 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.

Opinion

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 2017 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For B.P JAIN & CO
CHARTERED ACCOUNTANTS
FRN:050105S
Sd/-
DEVENDRA KUMAR BHANDARI
PARTNER
MEMBERSHIP NO: 208862
PLACE: CHENNAI
DATE: 30-05-2017