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Arihant Foundations & Housing Ltd.

BSE: 531381 Sector: Infrastructure
NSE: ARIHANT ISIN Code: INE413D01011
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NSE 10:38 | 22 May 59.00 -3.00
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OPEN 62.00
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VOLUME 200
52-Week high 82.50
52-Week low 32.45
P/E 38.99
Mkt Cap.(Rs cr) 53
Buy Price 59.05
Buy Qty 55.00
Sell Price 65.10
Sell Qty 100.00
OPEN 62.00
CLOSE 62.00
VOLUME 200
52-Week high 82.50
52-Week low 32.45
P/E 38.99
Mkt Cap.(Rs cr) 53
Buy Price 59.05
Buy Qty 55.00
Sell Price 65.10
Sell Qty 100.00

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 ARIHANT FOUNDATIONS& HOUSING LIMITED ("the company") which comprise the Balance Sheet as atMarch 31 2016 the Statement of Profit and Loss for the year and the Cash Flow Statementfor the year then ended and a summary of significant accounting policies and otherexplanatory 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

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 over financialreporting and the operating effectiveness of such controls. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting 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 312016 and its loss and its cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements 1. As required by the Companies(Auditor's Report) Order 2015 ("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 astatement on the matters specified in the paragraph 3 & 4 of the Order to the extentapplicable.

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 branchoffices audited 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 Flow Statementdealt with by this Report are in agreement with the books of account. The Company has nobranches;

e) 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;

f) On the basis of written representations received from the directors as on March 312016 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct

g) 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 financial statements as of March 312016;

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

iii. The amount of Rs.64470 has not been transferred to the Investor Education andProtection Fund by the Company.

For M/S. B.P.JAIN & CO
CHARTERED ACCOUNTANTS
Firm Registration Number: 050105S
Sd/-
DEVENDRA KUMAR BHANDARI
Place: New York PARTNER
Date: 26.05.2016 Membership Number: 208862

ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 1 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

1. 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.

2. a) As explained to us the stock of construction materials has been physicallyverified at periodic intervals and no significant discrepancies have been noticed on suchverification during the year.

b) In our opinion and according to the information and explanations given to us theprocedure of physical verification of stock of building material followed by themanagement is reasonable and adequate in relation to the size of the company and nature ofits company.

c) In our opinion and according to the information and explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere noticed on physical verification.

3. a) The company has granted loan to seven companies covered in the registermaintained under section 189 of the companies Act 2013 The maximum amount involved duringthe year was

Rs.385676015/- and the year-end balance of loans granted to such parties wasRs.381249873/-

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) Where the overdue amount exceeds rupees one lakh in respect of some of the loansin absence of any terms; we are unable to comment that company has taken necessary stepsto recover the amount and interest thereon.

4. In our opinion and according to information and explanations given to us thecompany has an adequate internal control system commensurate with the size of the companyand the nature of its business for the purchase of inventory and fixed assets and for thesales of goods and services. During the course of audit we have neither come across nornever informed of any continuing failure

to correct major weaknesses in internal control system.

5. In our opinion and according to information and explanations given to us thecompany has not accepted deposits during the year. Therefore the provisions of the clause3(v) of the order are not applicable to the company.

6. 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 ;

7. (a) According to the information and explanations given to us and on the basis ofexamination of books of accounts The Company is regular in depositing undisputedstatutory dues including Investor Education and protection fund Income Tax Wealth TaxService Tax Cess Sales tax Value added tax Excise duty and any other materialstatutory dues with the appropriate authorities 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
Income Tax Act

Tds Payable

Rs.5900/-

2015-16

07-11-2015

10-05-2016

Service Tax

ServiceTax Payable

Rs.507705/- 2015-16 06-08-2015 22-03-2016

(b) According to the information and explanation given to us there are dues in respectof income tax or sales tax or value added tax following taxes on account of dispute which are as follows:- Statement of Disputed Dues :-

Name of the Statue Nature of Dues

Amount (Rs.)

Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax

Rs.7638692/-

AY 1999-2000 FY 1998-1999 CIT Appeals
Income Tax Act 1961 Income Tax

Rs.7183310/-

AY 2011-201 FY 2010-2011 CIT Appeals
Income Tax Act 1961 Income Tax

Rs.1371638/-

AY 2004-2005 FY 2003-2004 Income Tax Appellate Tribunal (ITAT)
Income Tax Act 1961 Income Tax

Rs.5323956 /-

AY 2005-2006 FY 2004-2005 Income Tax Appellate Tribunal (ITAT)
Income Tax Act 1961

Income Tax

Rs.1519250/- AY 2013-2014 CIT Appeals
FY 2012-2013
Finance Act (Service Tax) 1994

Service Tax

Rs.2316081/- June 16 2005 to March 2007 CESTAT Chennai

(c) The company is not regular in transferring amounts to investor education andprotection fund in accordance with the relevant provisions of the Companies Act 1956 andrules made thereunder within time.

8. The company has been registered for a period not less than five years and has noaccumulated losses at the end of the financial year and it has incurred cash losses insuch financial year but not in the immediately preceding financial year;

9. In our opinion and according to the information and explanation given to us theCompany has not defaulted in repayment of dues to any financial institution or Bank.Further in our opinion and according to information and explanations given to us theCompany has not issued any debentures and hence there is no outstanding to debentureholders.

10. In our opinion and according to information and explanations given to us theCompany has given corporate guarantee of Rs.60 crores for loans taken by jointlycontrolled entity from non-banking finance company. The terms and conditions whereof arenot prejudicial to the interest of the company.

11. According to the information and explanation given to us and on the basis ofexamination of books of accounts the company has applied term loans for the purpose forwhich the loans were obtained;

12. To the best of our knowledge and belief and According to the information andexplanations given to us no fraud on or by the company has been noticed or reportedduring the year.

For M/S. B.PJAIN & CO
CHARTERED ACCOUNTANTS
Firm Registration Number: 050105S
Sd/-
DEVENDRA KUMAR BHANDARI
Place: New York PARTNER
Date: 26.05.2016 Membership Number: 208862