INDEPENDENT AUDITOR'S REPORT ON RESTATED FINANCIAL STATEMENTS OF ATAL REALTECH LIMITED
The Board of Directors Atal Realtech Limited
Shop No 1 Sumangal Builder House Holaram Colony Sadhu Vaswani Road Nashik 422 002
1. We have examined the attached Restated Summary Statement along with the significantaccounting policies and related notes of Atal Realtech Limited (the 'Company') as at andfor the financial years ended March 31 2020 2019 and 2018 annexed to this report andprepared by the Company for the purpose of inclusion in the Offer Document in connectionwith its proposed Initial Public Offer ("IPO").
2. The said Restated Financial Statements and other Financial Information have beenprepared in accordance with the requirements of: i. Section 26 of Part I of Chapter III tothe Companies Act 2013 ("the Act") read with Companies (Prospectus andAllotment of Securities) Rules 2014; ii. The Securities and Exchange Board of India (Issueof Capital and Disclosure Requirements) Regulations 2018 ("ICDR Regulations")issued by the Securities and Exchange Board of India ("SEBI") in pursuance toSection 11 of the Securities and Exchange Board of India Act 1992 and related amendments/ clarifications from time to time; iii. The terms of reference to our engagements withthe Company requesting us to carry out the assignment in connection with the Draft /Prospectus being issued by the Company for its proposed IPO of equity shares. iv. TheGuidance Note on Reports in Company Prospectus (Revised 2019) issued by the Institute ofChartered Accountants of India ("Guidance Note").
3. We have examined the accompanied Restated Statement of Profit and Loss' (Annexure II) for the financial years ended on March 31 2020 2019 and 2018 and theRestated Statement of Assets and Liabilities' (Annexure I) as on thosedates forming Part of the Financial Information' dealt with by this Reportdetailed below. Both read together with the Significant Accounting Policies and Notes toAccounts (Annexure IV & V) thereon which are the responsibility of theCompany's management. The information has been extracted from the financial statements forthe financial years ended on March 31 2020 2019 and 2018. The Financial Statements forthe financial year ended March 31 2020 and 2019 have been audited by us. The FinancialStatements for the financial year ended March 31 2018 have been audited by M/s. PratikParnerkar & Associates Chartered Accountants being the then Statutory Auditors ofthe Company and approved by the Board of Directors and upon which we have placed ourreliance while reporting.
4. In terms of Schedule VI (Part A) (11) (II) (i) of the SEBI (ICDR) Regulations 2009and other provisions relating to accounts of Atal Realtech Limited we M/s. A. S.Bedmutha & Co Chartered Accountants have been subjected to the peer review processof the Institute of Chartered Accountants of India (ICAI) and hold a valid certificateissued by the Peer Review Board of the ICAI.
5. Based on our examination we further report that: a. The Restated Statement ofAssets and Liabilities of the Company for the financial years ended on March 31 20202019 and 2018 examined by us as set out in Annexure I to this examination reportare after making adjustments and regrouping as in our opinion were appropriate and morefully described in the statement of significant accounting policies in Annexure IVand the Notes to Accounts in Annexure V. b. The Restated Statement of Profit andLoss of the Company for the financial years ended on March 31 2020 2019 and 2018examined by us as set out in Annexure II to this examination report are aftermaking adjustments and regrouping as in our opinion were appropriate and more fullydescribed in the statement of significant accounting policies in Annexure IV andthe Statement of Adjustments to the audited financial statements in Annexure V. c.The Restated Statement of Cash Flows of the Company for the financial years ended on March31 2020 2019 and 2018 examined by us as set out in Annexure III to thisexamination report are after making adjustments and regrouping as in our opinion wereappropriate and more fully described in the statement of significant accounting policiesin Annexure IV and the Notes to Accounts in Annexure V. d. The RestatedFinancial Statements have been made after incorporating adjustments for: i. The changesif any in accounting policies retrospectively in respective financial years to reflectthe same accounting treatment as per the changed accounting policy for all the reportingperiod / years. ii. Prior period and other material amount in the respective financialyears to which they relate.
Which are stated in the Notes to Accounts as set out in Annexure V e. SuchFinancial statements do not require any corrective adjustments on account of: i. Otherremarks/comments in the Companies (Auditor's Report) Order 2003 ("the Order")as amended issued by the Central Government of India in terms of sub - section (4A) ofsection 227 of the act on financial statements of the company for the financial yearsended on March 31 2020 2019 and 2018. ii. Extra-ordinary items that need to be disclosedseparately in the accounts requiring adjustments.
6. At the request of the company we have also examined the following financialinformation ("Other Financial Information") proposed to be included in the offerdocument prepared by the management and approved by the board of directors of the companyand annexed to this report:
7. At the request of the company we have also examined the following financialinformation ("Other Financial Information") proposed to be included in the offerdocument prepared by the management and approved by the board of directors of the companyand annexed to this report: i) Schedule of Share Capital (Annexure - VI) ii) Schedule ofReserves & Surplus (Annexure - VII) iii) Schedule of Long Term Borrowings (Annexure VIII) iv) Schedule of Other Non Current Liabilities (Annexure IX) v)Schedule of Long Term Provisions (Annexure X) vi) Schedule of Short Term Borrowings(Annexure XI) vii) Schedule of Trade Payables (Annexure XII) viii) Scheduleof Other Current Liabilities (Annexure XIII) ix) Schedule of Short Term Provisions(Annexure XIV) x) Schedule of Fixed Assets (Annexure - XV) xi) Schedule of DeferredTax Assets (Annexure XVI) xii) Schedule of Other Non Current Assets (Annexure XVII) xiii) Schedule of Long Term Loans & Advances (Annexure XVIII) xiv)Schedule of Inventories (Annexure XIX) xv) Schedule of Trade Receivables (Annexure XX) xvi) Schedule of Cash and Cash Equivalents (Annexure XXI) xvii) Scheduleof Short Term Loans & Advances (Annexure XXII) xviii) Schedule of Other CurrentAssets (Annexure XXIII) xix) Schedule of Revenue from Operations (Annexure XXIV) xx) Schedule of Other Income (Annexure XXV) xxi) Schedule of Disclosure UnderAccounting Standard (AS) - 7 - Construction Contracts (Annexure XXVI) xxii) Scheduleof Related Party Transactions (Annexure XXVII) xxiii) Schedule of Dividend Declared(Annexure XXVIII) xxiv) Schedule of Contingent Liability (Annexure XXIX) xxv)Statement of Tax Shelter (Annexure XXX)
8. In our opinion the Restated Financial Statements and the other FinancialInformation set forth in Annexure I to XXX read with the significant accounting policiesand notes to the restated financial statements have been prepared in accordance withsection 26 of Companies Act 2013 and the SEBI Regulations and the Guidance Note on thereports in Company Prospectus (Revised 2019) issued by the Institute of CharteredAccountants of India (ICAI). Consequently the financial information has been preparedafter making such regroupings and adjustments as were in our opinion consideredappropriate to comply with the same. As a result of these regrouping and adjustments theamount reported in the financial information may not necessarily be the same as thoseappearing in the respective audited financial statements for the relevant years.
9. This report should not in any way construed as a re-issuance or re-drafting of anyof the previous audit reports issued by us or earlier Statutory Auditors nor should thisreport be construed as a new opinion on any of the financial statement referred totherein. 10. We have no responsibility to update our report for events and circumstancesoccurring after the date of the report. 11. This report is intended solely for yourinformation and for inclusion in the Offer document in connection with the Company'sproposed IPO of equity shares and is not to be used referred to or distributed for anyother purpose without our prior written consent.
For A. S. Bedmutha & Co. Chartered Accountants
Firm Registration No. 101067W
Smruti R. Dungarwal Partner
Membership No: 144801
Date: September 22 2020