1. We have audited the accompanying financial statements of M/s Arihant
Superstructures Limited (''the Company''), which comprise the Balance
Sheet as at 31st March, 2014 and the Statement of Profit and Loss and
Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information,
which we have signed under reference to this report.
Management''s Responsibility for the Financial statements
2. The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of section 211 of ''the Companies Act, 1956'' of India (the Act)
read with the General Circular 15/2013 dated 13 September 2013 of
Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence,
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors'' judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditors consider internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by Management, as well
as evaluating the overall presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion
6. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date;
(c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by ''the Companies (Auditor''s Report) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of section 227 of the Act (hereinafter referred to as the Order), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
8. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
(d) In our opinion, the Balance Sheet and Statement of Profit and Loss
dealt with by this report comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956 read
with General Circular 15/2013 dated 13 September 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
(e) On the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2014, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Act.
Annexure to the Auditors'' Report of
Arihant Superstructure Limited
(Referred to in paragraph 1 of our Report of even date)
1 a) According to the information and explanation given to us the
company has maintained proper records showing full particulars
including quantitative details & situation of fixed assets.
b) All the assets have been physically verified by management during
the year and no material discrepancies were noticed on such
c) During the year the company has not disposed any substantial part of
fixed assets affecting going concern of the company.
d) None of the fixed assets have been revalued during the year.
2 a) As per the information and explanation given to us, the inventory
is physically verified during the year by the management of the
company. In our opinion, the frequency of such verification is
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
company and nature of its business
c) As per explanation given to us the company is maintaining proper
records of inventory and no discrepancies were noticed on verification
between physical inventories and books records.
3 a) The company has granted unsecured loan to its six subsidiary
companies. The maximum balance outstanding during the year was Rs.
9,768.27 Lakhs. And year-end balance of such loans amounted to Rs.
b) In our opinion, the rate of interest and terms and conditions of
such loans are prima facie not prejudicial to the interest of the
c) The receipt of principal amounts and interest has been as per
d) There is no amount overdue in respect of loan granted to companies,
firms or other parties listed in the register maintained under section
301 of the Act.
e) The Company has taken loan from three entities covered in the
registered maintained under section 301 of the Act. The maximum amount
outstanding during the year was Rs 3208.32 Lakhs and the year end
balance was Rs 967.70 Lakhs.
f) In our opinion, the rate of interest and other terms and condition
for such loan are prima facie not prejudicial to the interest of the
g) In respect of loan taken, the company is regular in paying the
principal amounts and interest as per terms and condition agreed.
4 In our opinion and according to the information and explanation given
to us, there are adequate internal control procedures commensurate with
the size of the company and its nature of its business with regard to
purchase of inventory, fixed assets and with regards to sale of goods.
During the course of our audit, we have not observed any continuing
failure to correct major weaknesses in internal controls.
5 According to the information and explanation given to us, In case of
transaction exceeding the value of Rs. 5 Lakhs in the financial year in
respect of a party that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956:
a) The transaction that needs to enter in the register maintained u/s
301 of the company Act, 1956 have been so entered.
b) In our opinion, each of these transactions has been made at prices
which are reasonable having regard to prevailing market prices at the
6 In our opinion, and according to information and explanation given to
us, the company has not taken any deposits in accordance with section
58A, 58AA of the companies'' act 1956 during the year.
7 In our opinion the company has an internal audit system commensurate
with its size and nature of its business.
8 The central government of India has not prescribed the maintenance of
cost records under clause (d) of sub section (1) of section 209 of the
Act for any of the product of the company.
9 a) According to the information and explanation given to us, the
company is regular in depositing with appropriate authorities
undisputed statutory dues including provident fund, profession tax, tax
deducted at sources, wealth tax, service tax and other material
statutory dues applicable to it.
b) According to information and explanation given to us there is no
amount payable in respect of income tax, sales tax, service tax and
other statutory dues that have not been deposited with appropriate
authorities on account of any dispute.
10 The company has no accumulated losses. The company has not incurred
any cash losses during the financial year ended on that date or in the
immediately preceding financial year.
11 Based on our audit procedures and on the information and
explanation given by management, we are of the opinion that the company
has not defaulted in repayment of its due to any financial institution
and bank during the year.
12 As informed, the Company has not granted loans and advances on the
basis of securities by way of pledge of shares, debenture and other
securities. Accordingly, the provision of clause 4 (xiii) of the order
are not applicable.
13 In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors Report) (Amendment) Order 2004 are not
applicable to the Company.
14 In our opinion, the Company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report)
(Amendment) Order 2004 are not applicable to the Company.
15 The company has given guarantee of Rs. 16,60,00,000/- for loan
taken by subsidiary (Arihant Technoinfra Pvt. Ltd.) from Bank. In our
opinion, the terms and conditions whereof are not prejudicial to the
interest of the company.
16 According to the information and explanation given to us , terms
loans were applied for the purpose for which the loan were obtained..
17 According to the information and explanation given to us and on an
overall examination of Balance Sheet of the Company, we report that the
no funds raised on short-term basis have been used for long-term
18 During the year, the company has not made preferential allotment of
shares to parties & Companies covered in the Register maintained U/s
301 of the Companies Act, 1956.
19 The Company has not issued any debentures during the year and does
not have any debentures outstanding as at the beginning of the year and
at the year end. Accordingly, the provisions of Clause 4(xix) of the
Order are not applicable to the Company.
20 We have verified the end use of money raised by right issue from the
draft prospectus filed with SEBI, the offer document and as documents
and as disclosed in the notes to the financial statements.
21 We have been informed that there is no fraud on or by the Company
has been either noticed or reported during the financial year
For and on behalf of
KAILASH CHAND JAIN & CO.
Firm Reg. No.112318W.
Mem. No. 134607
Place : Mumbai
Dated : 28/04/2014