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Anant Raj Ltd.

BSE: 515055 Sector: Infrastructure
NSE: ANANTRAJ ISIN Code: INE242C01024
BSE 00:00 | 17 Sep 65.60 -1.50
(-2.24%)
OPEN

66.75

HIGH

67.60

LOW

64.55

NSE 00:00 | 17 Sep 65.50 -1.70
(-2.53%)
OPEN

67.10

HIGH

67.70

LOW

64.55

OPEN 66.75
PREVIOUS CLOSE 67.10
VOLUME 34910
52-Week high 73.80
52-Week low 16.60
P/E 50.85
Mkt Cap.(Rs cr) 1,936
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 66.75
CLOSE 67.10
VOLUME 34910
52-Week high 73.80
52-Week low 16.60
P/E 50.85
Mkt Cap.(Rs cr) 1,936
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Anant Raj Ltd. (ANANTRAJ) - Auditors Report

Company auditors report

To the Members of Anant Raj Limited

Report on the Audit of the Standalone Financial Statements Opinion

Wehaveauditedtheaccompanyingstandalonefinancialstatements of Anant Raj Limited("the Company") which comprises the Balance Sheet as at March 31 2020 and theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe financial statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as "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 Companies Act 2013 (Act) in the manner so required and give a true and fair viewin conformity with the Indian Accounting Standards prescribed under section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended (Ind AS) andother accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2020 profit and total comprehensive income changes in equity andits cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing (SAs) specified under section 143 (10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics (CoE)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 is sufficientand appropriate to provide a basis for our audit opinion on the standalone financialstatements.

Emphasis of matter

We draw attention to Note 42 of the standalone financial statements which states that aComposite Scheme of Arrangement for Amalgamation (Amalgamation of Anant Raj AgenciesPrivate Limited(AmalgamatingCompany)withandintoAnantRajLimited (Company) and Demerger(Demerger of ‘Project Division' of the Company into Anant Raj Global Limited(Resulting Company) has been given effect based on the Appointed Date of September 302018 as approved by the Hon'ble National Company Law Tribunal (NCLT) Chandigarh Benchwhich is deemed to be the acquisition date for the purpose of accounting under Ind AS 103‘Business Combinations'. Consequently financial information for the year ended March31 2019 included in these standalone financial statements has been restated. Our opinionis not modified in respect of this matter.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's management and Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theCompany's annual report but does not include the Standalone Financial Statements and ourauditor's report thereon.

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

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information were required to report that fact we have nothing to report inthis regard.

Management's Responsibility for the Standalone Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements the management and Board of Directorsare responsible 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 Company's management and Board of Directors are responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operativeeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management and Board of Directors.

Conclude on the appropriateness of management and Board of Directors 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 conditions maycause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matters

(a) We did not audit the financial statements of Anant Raj Agencies Private Limited(Amalgamating Company) as considered in these standalone financial statements whosefinancial statements reflects total assets of Rs 2.77 Crores as at 31 March 2019 andtotal revenues of Rs 2.54 Crores and net cash flows amounting to Rs 2.77 Crores for period

30 September 2018 to 31 March 2019. These financial statements have been audited by anindependent practitioner whose report has been furnished to us by the management and ouropinion on the standalone financial statements in so far as it relates to the aforesaidamounts and disclosures included in respect of Amalgamating Company is based solely onthe report of the independent practitioner as adjusted for the accounting effects of theScheme recorded by the Company (in particular the accounting effects of Ind

AS 103 ‘Business Combinations') and other consequential adjustments which havebeen audited by us.

Our opinion on the standalone financial statements is not modified in respect of theabove matter with respect to our reliance on the work done and the report of theindependent practitioner.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143 (11) of the Act we givein the Annexure-‘A' a statement on the matters specified in paragraphs 3 and 4 of theOrder.

As required by Section 143(3) of the Act based on our audit report we report that: (a)We have sought and obtained all the information and explanations which to the best of ourknowledge 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) The standalone Balance Sheet the standalone statement of Profit and Loss(including Other Comprehensive Income) the standalone statement of Changes in Equity andthe standalone statement of Cash Flow dealt with by this Report are in agreement with therelevant books of account.

(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

(e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164 (2) ofthe 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". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

(h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements-Refer Note No. 26 31 and 33 to thestandalone financial statements.

ii. The Company did not have any material foreseeable losses on long-term contractsincluding derivative contracts.

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

for Vinod Kumar Bindal & Co.
Chartered Accountants
Firm Registration No. 003820N
Arvind Mittal
Dated: September 1 2020 Partner
Place: New Delhi Membership No. 509357

Annexure ‘A' to the Independent Auditor's Report

(Referred to in paragraph under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Anant Raj Limited of even date)

i. In respect of the Company's fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to the information andexplanations given to us no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and the records examinedby us we report that the title deeds of immovable properties are held in the name of theCompany as at the balance sheet date. In respect of immovable properties that have beentaken on lease the lease agreements are in the name of the Company except one leaseagreement which is not registered in the name of the Company.

ii. The inventory includes land buildings construction work in progressconstruction and development material development rights spares were physically verifiedby the management at reasonable intervals during the year. The discrepancies noticed onphysical verification of inventory as compared to book records were not material and havebeen properly dealt with in the books of account.

iii. According to the information and explanations given to us the Company has grantedunsecured loans to its subsidiaries and associates covered in the register maintainedunder section 189 of the Act in respect of which: (a) The terms and conditions of thegrant of such loans in our opinion prima facie not prejudicial to the interests of theCompany.

(b) The schedule of repayment of principal and interest has been stipulated andrepayments or receipts of principal amounts and interest have been regular as perstipulations.

(c) There is no overdue amounts remaining outstanding as at the year end.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act in respect ofgrant of loans making investments and providing guarantees and securities as applicable.

v. According to the information and explanations given to us the Company has notaccepted deposits during the year within the meaning of sections 73 to 76 or any otherrelevant provisions of the Act and does not have any unclaimed deposits as at March 312020 and therefore the provisions of the clause 3(v) of the Order are not applicable tothe Company.

vi. We have broadly reviewed the cost records maintained by the Company pursuant to theRules made by the Central Government for the maintenance of cost records under subsection(1) of Section 148 of the Act in respect of activities carried on by the Company and areof the opinion that prima facie the prescribed accounts and records have been made andmaintained. However we have not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

vii. According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing the undisputed statutory duesincluding provident fund employees' state insurance income tax goods and service taxcustoms duty excise duty cess and other material statutory dues applicable to it withthe appropriate authorities except for a few instances of delay in deposits.

(b) There were no undisputed amounts payable in respect of provident fund employees'state insurance income tax goods and service tax customs duty excise duty cess andother material statutory dues in arrears as at March 31 2020 for a period of more thansix months from the date they become payable.

(c) The dues in respect of service tax value added tax income tax and excise dutywhich have not been deposited as at March 31 2020 on account of dispute are given below:

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 Sales tax 85.51lakhs * FY 2002-03 Hon'ble High Court of Punjab & Haryana Chandigarh Writ petition filed by the Company is pending before the Hon'ble High Court of Punjab & Haryana Chandigarh
Haryana Value Added tax Act 2003 Value added tax 131.65 Lakhs* FY 2003-04 Hon'ble High Court of Punjab & Haryana Chandigarh Writ petition filed by the Company is pending before the Hon'ble High Court of Punjab & Haryana Chandigarh
Income tax Act 1961 Income tax 279.12 Lakhs# AY 1997- 981998-99 1999-2000 Hon'ble High Court of Delhi Delhi Appeal filed by the Company is pending before Hon'ble High Court of Delhi New Delhi
Income tax Act 1961 Income tax 216.56 Lakhs A.Y. 2017-18 The CIT Mumbai. Appeal filed by the Company is pending before CIT (Appeals)-54 Mumbai.

* 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 andadditional tax viii. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of borrowings from banks andfinancial institutions. The Company has not issued any debentures and does not have loansor borrowings from government.

ix. The Company has not raised moneys by way of initial public offer or further publicoffer. As informed to us the term loans were applied for the purposes for which those areraised.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations give to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. The Company is not a Nidhi Company.

xiii. In our opinion and according to the information and explanations give to us theCompany is in compliance with section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of such transactions have beendisclosed in the standalone financial statements as required by the applicable accountingstandards.

xiv. The Company has not made any preferential allotment or private placement of sharesduring the year.

xv. The Company has not entered into any non-cash transactions with its directors orpersons connected to its directors during the year.

xvi. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

for Vinod Kumar Bindal & Co.
Chartered Accountants
Firm Registration No. 003820N
Arvind Mittal
Dated: September 1 2020 Partner
Place: New Delhi Membership No. 509357

Annexure ‘B' to the Independent Auditor's Report

(Referred to in paragraph (f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Anant Raj Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Anant RajLimited ("the Company") as of March 31 2020 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note) issued by the Institute of Chartered Accountants ofIndia (ICAI). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to respective company'spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note issued by the ICAI and the Standards on Auditingprescribed under Section 143(10) of the Act to the extent applicable to an audit ofinternal financial controls. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

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 internal financial controls system overfinancial reporting of the Company.

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 (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

for Vinod Kumar Bindal & Co.
Chartered Accountants
Firm Registration No. 003820N
Arvind Mittal
Dated: September 1 2020 Partner
Place: New Delhi Membership No. 509357

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