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Ajmera Realty & Infra India Ltd.

BSE: 513349 Sector: Infrastructure
NSE: AJMERA ISIN Code: INE298G01027
BSE 00:00 | 02 Mar 131.45 3.85
(3.02%)
OPEN

129.35

HIGH

133.00

LOW

127.55

NSE 00:00 | 02 Mar 131.55 3.75
(2.93%)
OPEN

128.70

HIGH

133.40

LOW

128.00

OPEN 129.35
PREVIOUS CLOSE 127.60
VOLUME 12255
52-Week high 151.40
52-Week low 53.00
P/E 26.61
Mkt Cap.(Rs cr) 466
Buy Price 128.80
Buy Qty 453.00
Sell Price 135.00
Sell Qty 5.00
OPEN 129.35
CLOSE 127.60
VOLUME 12255
52-Week high 151.40
52-Week low 53.00
P/E 26.61
Mkt Cap.(Rs cr) 466
Buy Price 128.80
Buy Qty 453.00
Sell Price 135.00
Sell Qty 5.00

Ajmera Realty & Infra India Ltd. (AJMERA) - Auditors Report

Company auditors report

To

The Members of

AJMERA REALTY & INFRA INDIA LIMITED

MUMBAI

Report on the Audit of the Standalone financial statements Opinion

We have audited the accompanying standalone financial statements ofAJMERA REALTY & INFRA INDIA LIMITED ("the Company") which comprise theBalance Sheet as at 31st March 2020 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Statement of Cash Flowsfor the year ended on that date and a summary of the significant accounting policies andother explanatory information (hereinafter referred to as "the standalone financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsspecified under Section 133 of the Act and other accounting principles generally acceptedin India of the state of affairs of the Company as at 31st March 2020 and its profitchange in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone financial statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theindependence requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. Key Audit Matter No. Auditor's response
1. Accuracy of recognition measurement presentation and disclosures of revenues and other related balances as per Ind AS 115 "Revenue from Contracts with Customers" Principal Audit Procedures
We assessed the Company's process to identify the impact of revenue accounting standard.
Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
Sr. Key Audit Matter No. Auditor's response
The application of the revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognised over a period. Additionally new revenue accounting standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. 0 Evaluated the design of internal controls relating to implementation of the revenue accounting standard.
0 Selected a sample of continuing and contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation reperformance and inspection of evidence in respect of operation of these controls.
0 Tested the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the revenue accounting standard.
0 Selected a sample of continuing and contracts and performed the following procedures:
• Read analysed and identified the distinct performance obligations in these contracts.
• Compared these performance obligations with that identified and recorded by the Company.
• Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.

Information Other than the Standalone financial statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for thepreparation of the other information. The other information comprises the informationincluded in the Management Discussion and Analysis Board's Report includingAnnexures to Board's Report Business Responsibility Report Corporate GovernanceReport and Shareholder's Information but does not include the standalone financialstatements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone financialstatements

The Company's Board of Directors is responsible for the matters insection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance total comprehensive income change in equity and cashflows of the Company in accordance with the Ind AS and other accounting principlesgenerally accepted in India. This responsibility also includes the maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of internal financial control that were operating effectively for ensuringthe accuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone financialstatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

- Obtain an understanding of internal financial controls relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

- Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

- Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

- Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonestandalone financial statements represent the underlying transactions and events in amanner that achieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters if any that were of most significance in the audit of thestandalone financial statements of the current period and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

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

in terms of sub-section (11) of section 143 of the act we give in"Annexure A" a statement on the matters

specified in paragraphs 3 and 4 of the Order.

2 As required by Section 143 (3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books.

c) The standalone Balance Sheet the standalone Statement of Profit andLoss including the Statement of Other Comprehensive Income the standalone Cash FlowStatement and standalone Statement of Changes in Equity dealt with by this Report are inagreement with the books of account;

d) In our opinion the aforesaid standalone financial statements complywith the Indian Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of written representations received from the directorsas on 31 March 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its directors during theyear is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rule 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 if anyon its financial position in its standalone financial statements.

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts.

iii. There has been no delay in transferring amounts if any requiredto be transferred to the Investor Education and Protection Fund by the Company.

FOR MANESH MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
firm REGN no. 115832W
MANESH P MEHTA - PARTNER
place : vadodara membership no. 36032
dated : 27th JULY 2020 UDIN: - 20036032AAAABX9741

ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure referred to in Independent Auditor's Report to themembers of the Company on the

standalone financial statements for the year ended 31st March 2020 wereport that:

(i) (a) The company is maintaining proper records showing fullparticulars including quantitative details and

situation of fixed assets.

(b) These fixed assets have been physically verified by the managementat reasonable intervals. Discrepancies noticed during the course of such verification aredealt with adequately in the books of accounts.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company does not have any immovableproperties as a fixed asset.

(ii) (a) Physical verification of inventory has been conducted atreasonable intervals by the management.

(b) In our opinion and according to the explanations given to us theprocedures for physical verification of inventories followed by the Management arereasonable and adequate in relation to the size of the Company and nature of its business.

(c) In our opinion and according to the explanations given to us theCompany has maintained proper records of its inventories and no material discrepancieswere observed during the course of physical verification.

(iii) The Company has granted Interest free loans secured or unsecuredto companies firms Limited liability Partnerships or other parties covered in theregister maintained under section 189 of the Companies Act 2013 (‘the Act'). Inrespect of the said loans the maximum outstanding during the year is Rs. 54560.95 Lakhsand the year end balance is Rs. 54560.95 Lakhs.

(a) In our opinion the rate of interest and other terms and conditionson which the loans had been granted to the bodies corporate listed in the registermaintained under Section 189 of the Act were not prima facie prejudicial to the interestof the Company

(b) In the case of the loans granted to the bodies corporate listed inthe register maintained under section 189 of the Act the borrowers have been regular inthe payment of the principal and interest as stipulated.

(c) There are no overdue amounts in respect of the loan granted to abody corporate listed in the register maintained under section 189 of the Act remainingoutstanding as at the year-end.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made.

(v) The Company has not accepted any deposits from the public.

(vi) The Central Government has prescribed maintenance of cost recordsunder Section148 and as per the explanation given to us the company has maintained primafacie requisite records as per Section148.

(vii) a. The Company is generally regular in depositing withappropriate authorities undisputed statutory dues

including provident fund employees state insurance income tax goodsand service tax and other statutory dues to the extent applicable to it. There is nooutstanding statutory dues as at the last day of the financial year concerned for a periodof more than six months from the date they became payable.

b. According to the information and explanations given to us there areno dues of Income Tax or Sales Tax or Wealth Tax or Goods and Service Tax Service Taxduty of customs or cess which have not been deposited with the appropriate authorities onaccount of any dispute. However according to information and explanations given to usthe following dues of income tax have not been deposited by the Company on account ofdisputes:

Nature of dues Amount (in Lakhs) Period to which the amount relates Forum where dispute is pending
Tax and Interest 0.31 A.Y. 2010-2011 Income Tax Officer
Tax and Interest 49.16 A.Y. 2011-2012 Income Tax Officer
Tax and Interest 78.97 A.Y 2013-2014 Income Tax Officer
Tax and Interest 7.09 A.Y 2015-2016 Income Tax Officer

(vIII) In our opinion and according to information and explanationgiven to us the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank Government or dues to debenture holders.

(Ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) during the year. And the Money raisedby way of term loans were applied for the purposes for which those are raised.

(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

(xI) According to the information and explanations give to us and basedon our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

(xII) In our opinion and according to the information and explanationsgiven to us The Company Is not a Nidhi Company and hence reporting under clause 3 (xII)of the Order Is not applicable to the Company.

(xIII) According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone Ind AS financialstatements as required by the applicable accounting standards.

(xIv) According to the information and explanations give to us andbased on our examination of the records of the Company during the year the Company hasnot made any preferential allotment or private placement of shares or fully or partly paidconvertible debentures and hence reporting under clause 3 (xIv) of the Order Is notapplicable to the Company.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly reportingunder clause 3 (xv) of the Order Is not applicable to the Company.

(xvI) The Company Is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

FOR MANESH MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
firm REGN no. 115832W
MANESH P MEHTA - PARTNER
place : vadodara membership no. 36032
dated : 27th JULY 2020 UDIN: - 20036032AAAABX9741

ANNEXURE - B TO THE INDEPENDENT AUDITORS'

REPORT

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of AJMERA REALTY & INFRA INDIA LIMITED ("the company") as of 31stMarch 2020 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(‘ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under section 143(10) of the Companies Act 2013 tothe extent applicable to an audit of internal financial controls both applicable to anaudit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the standalone Ind AS standalone financial statementswhether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of standalone financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone 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 (3) providereasonable assurance regarding prevention or timely detection of unauthorised acquisitionuse or disposition of the company's assets that could have a material effect on thestandalone financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31st March 2020 basedon 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 MANESH MEHTA & ASSOCIATES
CHARTERED ACCOUNTANTS
firm REGN no. 115832W
MANESH P MEHTA - PARTNER
place : vadodara membership no. 36032
dated : 27th JULY 2020 UDIN: - 20036032AAAABX9741

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