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Auditor Report of Arihant Superstructures Ltd.

Mar 31, 2015

We have audited the accompanying standalone financial statements of M/s Arihant Superstructures Ltd. ('the Company'), which comprise the Balance Sheet as at 31st March, 2015 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.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matter stated in section 134(5) of the Companies Act, 2013 (" the Act") with respect to the preparation and presentation of these standalone 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 principles generally accepted in India, including the Accounting standards specified under section 133 of the Act, read with Rule 7 of the Companies ( Accounts ) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the company and for the preventing and detecting frauds and other irregularities, selection and application of appropriate accounting policies making judgments and estimates that are reasonable and prudent ; and design , implementation and maintenance of adequate internal financial control , that were operating effectively for ensuring the accuracy and completeness of accounting records, 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.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matter which are required to be included in the audit report under provisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. The Standards require that we comply with ethical requirement and plan and perform the audit to obtain reasonable assurance about whether the financial statement is free from material misstatement.

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 financial control relevant to the Company's preparation and fair presentation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on whether the company has in place and adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by company directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on standalone financial statements.

Opinion

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, 2015

(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

1. As required by 'the Companies (Auditor's Report) Order, 2015 ( "the Order" ) issued by the Central Government of India in terms of sub section (11) of section 143 of the Act , we give in the Annexure a statement on the matter specified in the paragraph 3 and 4 of the order , to the extent applicable.

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 best of our knowledge and belief, were necessary for the purpose of our audit;

(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 those books;

(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 account;

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

(e) On the basis of written representations received from the directors as on 31st March, 2015, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2015, from being appointed as a director in terms of section 164 (2) of the Act; and

(f) With respect to the other matters to be included in the Auditor's Reports in accordance with Rule 11 of the Companies

(Audit and Auditors) Rules 2014, in our opinion and to the best of our information and according to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements as referred to in Note 2.16 to the financial statements.

(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.

ANNEXURE TO THE AUDITORS' REPORT

The Annexure referred to in our Independent Auditors' Report to the members of the Company on the Standalone financial statement for the year ended 31st March 2015, we report that:

(i) a) The company has maintained proper records showing full particulars, including quantities details and situation of fixed assets.

b) The Company has regular programme of physical verification of its fixed assets. As per information and explanation given to us no material discrepancies were noticed on such verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the company and the nature of its assets.

(ii) a) According to 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 reasonable.

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 provided by the management the company is maintaining proper records of Inventory and no discrepancies were noticed on verification between physical inventories and books records.

(iii) The Company has granted unsecured loans, to six companies covered in the register maintained under Section 189 of the Act.

a) In respect of the aforesaid loan, the parties are repaying the principal amounts, as stipulated, and are also regular in payment of interest as applicable.

b) In respect of the aforesaid loans, in the cases where the overdue amount is more than Rupees One Lakh, in our opinion, reasonable steps have been taken by the Company for the recovery of the principal amounts and interest.

(iv) 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 material, 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.

(v) The Company has not accepted any deposit from the public within the meaning of section 73, 74, 75 and 76 of the Act and the rules framed there under to the extent notified.

(vi) The Central Government of India has prescribed the maintenance of cost records under section 148 (1) of the Act, however, as per information and explanations given to us, the said provisions are not applicable to the Company.

(vii) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues in respect of Income Tax, Sales Tax, Service Tax, though there has been a slight delay in payment of Professional Tax, with the appropriate authorities.

According to the information and explanations given to us , no undisputed amounts payable in respect of provident fund , income tax , sales tax , wealth tax, service tax duty of customs value added tax, cess and other material statutory dues were in arrears as at 31st March 2015 for the period of more than six months from the date they became payable other than Works Contracts Tax amounting to Rs. 63,366 which was paid beyond the period of 6 months since it became payable.

b) According to the information and explanations given to us and the records of the Company examined by us, there are no dues of sales-tax, wealth-tax, service-tax, duty of excise, value added tax, cess which have not been deposited on account of any dispute. The particulars of dues of income tax as at 28/05/2015 which have not been deposited on account of a dispute, are as follows;

Name of the statute Nature of dues Amount Period to which the Forum where the dispute is (Rs.) amount relates pending The Income Tax Act, 1961 Income Tax 32,24,840/- FY. 2011-12 CIT Appeals

c) Accordingly to the information and explanation given to us the amounts which were required to transferred to the investor protection fund in accordance with the relevant provision of the Companies Act, 1956 and the rules there under has been transferred to such fund within time.

(viii) The Company has no accumulated losses as at the end of the financial year and it has not incurred any cash losses in the financial year ended as on that date or in the immediately preceding financial year.

(ix) According to the records of the Company examined by us and the information and explanation given to us, the Company has not defaulted in repayment of dues to any financial institution or bank as at the balance sheet date.

(x) The company has given guarantee of Rs. 16,60,00,000/- for loan taken by associate (Arihant Technoinfra Pvt. Ltd.) from Bank. In our opinion, the terms and conditions whereof are not prejudicial to the interest of the company.

(xi) In our opinion, and according to the information and explanations given to us, the term loans have been applied, on an overall basis, for the purposes for which they were obtained.

(xii) According to the information and explanation given to us, no material fraud on or by the company has been noticed or reported during the course of our audit.

For and on behalf of KAILASH CHAND JAIN & CO.

CHARTERED ACCOUNTANTS Firm Reg. No.112318W.

Sd/- Dipesh Mehta Partner Mem. No. 134607

Place : Mumbai Date : 28/05/2015


Mar 31, 2014

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.

Auditors'' Responsibility

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

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 audit;

(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 those books;

(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 account;

(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, 2013.; and

(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 verification.

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 reasonable.

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. 4,751.16 Lakhs.

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 company.

c) The receipt of principal amounts and interest has been as per stipulation.

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 company.

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 relevant time.

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 investment.

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 2013-2014.

For and on behalf of KAILASH CHAND JAIN & CO. CHARTERED ACCOUNTANTS Firm Reg. No.112318W.

Sd/- DIPESH MEHTA PARTNER Mem. No. 134607

Place : Mumbai Dated : 28/04/2014


Mar 31, 2013

Report on the Financial Statements

We have audited the accompanying Financial Statements of ARIHANT SUPERSTRUCTURES LIMITED (''the Company'') which comprise the Balance Sheet as at 3Ist March 20I3, the Statement of Profit & Loss and the Cash Flow Statement for the year ended on that date and a summary of significant accounting policies and other explanatory information.

Management''s responsibility for the Financial Statements

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 the accordance with Accounting Standard referred in sub- section (3C) of section 2II of the Companies Act of I956 ("the Act"). 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.

Auditor''s Responsibility

Our responsibility is to express an opinion on these Financial Statements based on our audit. We conduct our audit in accordance with the standard 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.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Financial Statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Financial Statements, whether due to fraud or error. In making those risk assessment, the auditor considers 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the management, as well as evaluating the overall presentation of Financial Statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide the basis for our audit opinion. Opinion

In our opinion and to the best of our information and according to the explanations given to us, the 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 principle generally accepted in India:

i. in the case of the Balance Sheet, of the state of affairs of the company as at 3Ist March, 20I3;

ii. In the case of the Statement of Profit & Loss, of the profit for the year ended on that date.

iii. 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 Requirement

1. As required by the Companies (Auditors'' Report) Order, 2003 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure, a Statement on the matters specified in paragraphs 4 and 5 of the Order.

2. 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 audit;

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 books;

c) The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the Books of Account;

d) In our opinion, the Balance Sheet, Statement of Profit & Loss and Cash Flow Statement comply with the Accounting Standards referred in sub - section (3C) of the section 2II of the Companies Act, I956; and

e) On the basis of the written representations received from the Directors as on 3I March 20I3 and taken on record by the Board of Directors, and none of directors is disqualified as on 3I March 20I3 from being appointed as Director in terms of clause (g) of sub-section (I) of Section 274 of the Companies Act, I956.

Annexure to the Auditors'' Report of ARIHANT SUPERSTRUCTURE LIMITED, on the Financial Statements for the year ended March 31, 2013

Based on the audit procedures performed for the purpose of reporting a true and fair view on the Financial Statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

1 a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of Fixed Assets;

b) Fixed Assets have been physically verified by the Management. In our opinion, the frequency of verification of the Fixed Assets is reasonable having regards to the size of the Company and nature of its Assets. No material discrepancies were noticed on such verification.

c) In our opinion, a substantial part of Fixed Assets has not been disposed off during the year.

2 a) The management has conducted physical verification of inventory at reasonable intervals.

b) The procedures of physical verification of Inventory followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) As per the explanation provided by the management the Company is maintaining proper records of Inventory and no discrepancies were noticed on verification between physical inventories and book records.

3 a) The Company has granted unsecured loans to its six Subsidiary Companies. The maximum balance outstanding during the year was Rs. 8,663.27 Lakhs and year end balance of such loans amounted to Rs.7,478.70 Lakhs.

b) In our opinion, the rate of interest, and other terms and conditions of such loans are prima facie not prejudicial to the interests of the Company.

c) The receipts of Principal amounts and Interest have been as per stipulations.

d) There is no amount overdue in respect of loans granted to Companies, Firms or other Parties listed in the register maintained under Section 30I of the Act.

e) The Company has taken loans from one entity covered in the register maintained under Section 30I of the Act. The maximum amount outstanding during the year was Rs. 2,657.07 Lakhs and the year-end balance was Rs. 2,485.56 Lakhs.

f) In our opinion, the rate of interest and other terms and conditions for such loans are prima facie, not prejudicial to the interest of the Company.

g) In respect of loans taken, the company is regular in repaying the principal amounts and interest as per the terms and conditions agreed.

4 In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business, for the purchase of inventory, fixed assets and for the sale of property. During the course of our audit, no major weakness has been noticed in the internal controls.

5 a) Based on the audit procedures applied by us and according to the information and explanations provided by the management, we are of the opinion that the transactions that need to be entered into the register maintained under Section 30I of the Companies Act, I956 have been so entered.

b) Such transactions have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time.

6 In our opinion and according to the information and explanations given to us, the Company has not accepted any deposit from the public within the meaning of Section 58A and 58AA of the Companies Act, I956 and the rules framed there under.

7 In our opinion, the Company has an adequate Internal Audit System commensurate with its size and the nature of its business.

8 We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under section 209(1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete.

9 According to the information and explanations given to us in respect of statutory dues:

a) Undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty Excise Duty, cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities. No undisputed amounts payable in respect thereof were outstanding at the year end for a period of more than six months from the date they became payable.

b) There are no amounts in respect of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty and cess that have not been deposited with the appropriate authorities on account of any dispute

10 The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and the immediately preceding financial year.

11 The Company has not defaulted in repayment of dues to a Financial Institution or a Bank or Debenture holders during the year.

12 The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4 (xii) of the Order are not applicable.

13 In our opinion, the Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund/ Society. Accordingly, the provisions of clause 4(xiii) of the Order are not applicable.

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 Order are not applicable.

15 In our opinion, the terms and conditions on which the Company has given guarantees for loans taken by others from Banks or Financial Institutions are not prejudicial to the interest of the Company.

16 According to the information and explanations given to us, term loans were applied for the purpose for which the loans were obtained.

17 On the overall examination of the Balance Sheet, in our opinion no funds raised on short-term basis have been used for long-term investment.

18 The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under Section 30I of the Act during the year.

19 No debentures have been issued during the year. Accordingly the provisions of clause 4 (xix) of the order is not applicable.

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 disclosed in the notes to the financial statements.

21 No fraud on or by the Company has been noticed or reported during the period covered by our audit.

For T N Gala & Associates

Chartered Accountants

FRN: 102951W

Sd/-

Talakchand N. Gala

Place: Navi Mumbai Proprietor

Date: 11.05.2013 MRN: 41186


Mar 31, 2011

We have audited the attached Balance Sheet of ARIHANT SUPERSTRUCTURES LTD. as on 31st March 2011 and also the annexed Profit & Loss Account of the Company for the year ended on that date. These Financial Statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these Financial Statements based on our audit.

We have conducted our audit in accordance with Auditing Standards generally accepted in India. These standards require that we plan and perform the audit to obtain responsible assurance about whether the Financial Statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Financial Statement. An audit also includes assessing the accounting principles used and significant estimates made by Management, as well as evaluating the overall Financial Statement presentation. We believe that our audit provides a responsible basis for our opinion.

1. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of Section 227(4A) 227 of the Companies Act, 1956, we enclose in the Annexure a Statement on the matters specified in paragraphs 4 and 5 of the said order.

2. Further to our comments in the Annexure referred to in paragraph 1 above, we state 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 audit;

b) In our opinion, proper Books of Account, as required by Law, have been kept by the Company so far as ap- pears from our examination of books.

c) The Balance Sheet and the Profit &. Loss Account dealt with by this report are in agreement with the Books of Account

d) In our opinion the Balance Sheet and the Profit & Loss Account complies with the mandatory Accounting Standards referred in Section 211 (3C) of the Companies Act, 1956.

e) On the basis of the written representations received from the Directors and taken on record by the Board of Directors, and according to the information and explanation given to us, none of the Directors are prima fa- cie disqualified as on March 31st, 2011 from being appointed as Director in terms of clause (g) of sub-section (1) of Section 274 of Act.

f) Reference is invited to Note No, 3 of Notes to Accounts read with Accounting Policy of Revenue Recognition of Schedule XIV, relating to the change in Accounting Policy adopted by the Company during the year, so as to bring them in line with norms generally followed in the industry and to make the Financial Statements more comparable. As a result of such change Profit Before Tax for the March 2011 is lower by Rs. 22,309,686/-

g) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the significant accounting policies and Notes thereon give the information required by the Companies Act, 1956 in the manner so required and give true and fair view:-

i. In the case of Balance Sheet of the State of Affairs of the Company as at 31st March, 2011; and

ii. In the case of the Profit and Loss Accounts, of the Profit for the year ended on that date.

iii. In the case of the Cash flow Statement, of the Cash Flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT OF ARIHANT SUPERSTRUCTURES LIMITED. on the Financial Statements for the year ended March 31, 2011

Based on the audit procedures performed for the purpose of reporting a true and fair view on the Financial Statements of the Company and taking into consideration the information and explanations given to us and the Books of Account and other records examined by us in the normal course of audit, we report that:

1. a) The Company has maintained proper records showing full particulars, including quantitative details and situation of Fixed Assets;

b) The Fixed Assets has been physically verified by the Management during the year. In our opinion, the frequency of verification of the Fixed Assets is reasonable having regards to the size of the Company and nature of its assets. No material discrepancies were noticed on such verification.

c) In our opinion, a substantial part of Fixed Assets has not been disposed off during the year.

2. a) The Inventory includes land, flats, Incomplete Projects (WIP), and construction and development material and development rights in identified land. Physical verification of Inventory except stocks represented by development rights, confirmations for which have been obtained have been conducted at reasonable intervals by the Management.

b) The procedures of physical verification of Inventory followed by the Management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company is maintaining proper records of Inventory and no material discrepancies were noticed on physical verification. The Physical verification of Inventory has been conducted at reasonable intervals by the Management.

3 a) During the year, the Company has given unsecured loans to three Subsidiary Companies. At the year end, the loans granted to three Subsidiaries aggregate to Rs. 1,698.76 Lakhs. The maximum balance outstanding during the year is Rs. 1,724.63 Lakhs.

b) The rate of interest, and other terms and conditions of such loans are, in our opinion, prima facie not prejudicial to the interests of the Company.

c) The receipts of Principal amounts and Interest have been as per stipulations.

d) There is no amount overdue in respect of loans granted to Companies, Firms or other Parties listed in the register maintained under Section 301 of the Act.

e) The Company has taken loans from two entities covered in the register maintained under Section 301 of the Act. The maximum amount outstanding during the year was Rs. 1,272.47 lacs and the year-end balance was Rs. 1,109.43 lacs.

f) In our opinion, the rate of interest and other terms and conditions for such loans are, prima facie, not prejudicial to the interest of the Company.

g) In respect of loans taken, the principal amount and interest amount are payable on demand in accordance with the terms and conditions, and payment of interest has been regular in accordance with such terms and conditions.

4 In our opinion, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of Inventory and Fixed Assets and for the sale of Goods and Services.

5 a) In our opinion, the particulars of all contracts or arrangements that need to be entered into the register maintained under Section 301 of the Act have been so entered.

b) In our opinion, the transactions made in pursuance of such contracts or arrangements and exceeding the value of Rupees Five lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6 The Company has not accepted any public deposit in the year of audit.

7 In our opinion, the Company has an Internal Audit System commensurate with its size and the nature of its business.

8 According to information and explanations offered to us, Central Government has not prescribed any maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Act.

9 According to the information and explanations given to us in respect of statutory dues:

a) Undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty Excise Duty, cess and other material statutory dues, as applicable, have generally been regularly deposited with the appropriate authorities. No undisputed amounts payable in respect thereof were outstanding at the year end for a period of more than six months from the date they became payable.

b) There are no amounts in respect of Sales Tax, Income Tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty and cess that have not been deposited with the appropriate authorities on account of any dispute

10 The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and the immediately preceding financial year.

11 The Company has not defaulted in repayment of dues to a Financial Institution or a Bank or Debenture holders during the year.

12 The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. Accordingly, the provisions of clause 4 (xii) of the Order are not applicable.

13 In our opinion, the Company is not a Chit Fund or a Nidhi / Mutual Benefit Fund / Society. Accordingly, the provisions of clause 4(xiii) of the Order are not applicable.

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 Order are not applicable.

15 In our opinion, the terms and conditions on which the Company has given guarantee for loans taken by others from Banks or Financial Institutions are not, prima facie, prejudicial to the interest of the Company.

16 In our opinion and according to the information and explanations given to us, the Term Loans have been applied for the purpose for which they were raised.

17 On the overall examination of the Balance Sheet, in our opinion, no funds raised on short-term basis have been used for long-term investment.

18 The Company has made preferential allotment of shares to parties or companies covered in the register maintained under Section 301 of the Act and price at which shares have been issued, in our opinion, prima facie is not prejudicial to the interests of the Company

19 No debentures have been issued during the year. Accordingly the provisions of clause 4 (xix) of the order is not applicable.

20 The Company has not raised money by rights issues during the year.

21 No fraud on or by the Company has been noticed or reported during the period covered by our audit.



For T N Gala & Associates Chartered Accountants FRN: 102951W

Sd/- Talak N. Gala Proprietor MRN: 41186

Date : 05.05.2011 Place: Navi Mumbai


Mar 31, 2010

We have audited the attached Balance Sheet of Arihant Superstructures ltd. as on 31st March 2010 and the Proft & Loss Account and also the cash flow statement of the Company for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys Management. Our responsibility is to express an opinion on these financial statements based on our audit.

We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and signifcant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a responsible basis for our opinion.

1. As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government in terms of sub- section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specifed in paragraphs 4 and 5 of the said Order.

2. Further to our comments in the Annexure referred to in paragraph 1 above, 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 audit;

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 books.

c) The Balance Sheet, Proft & Loss Account and Cash flow statement dealt with by this report are in agreement with the books of account

d) In our opinion the Balance Sheet, Proft & Loss Account and Cash flow statement complies with the Mandatory Accounting Standards referred in Section 211(3C) of the Companies Act, 1956.

e) On the basis of the written representations received from the Directors and taken on record by the Board of Directors, and according to the information and explanation given to us, none of the Directors are prima facie disqualifed as on March 31st, 2010 from being appointed as Director in terms of clause (g) of sub- section (1) of Section 274 of Companies Act, 1956.

f) In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the signifcant accounting policies and Notes thereon give the information required by the Companies Act, 1956 in the manner so required and give true and fair view in conformity with the accounting principles generally accepted in India:- i. In the case of Balance Sheet of the State of affairs of the company as at 31st March, 2010; and ii. In the case of the Proft and Loss Accounts, of the Proft for the year ended on that date; and iii. In the case of the Cash flow statement, of the cash flows for the year ended on that date. ANNEXURE TO THE AUDITORS REPORT OF ARIHANT SUPERSTRUCTURES LIMITED. on the financial statements for the year ended March 31, 2010

Based on the audit procedures performed for the purpose of reporting a true and fair view on the Financial Statements of the Company and taking into consideration the information and explanations given to us and the books of account and other records examined by us in the normal course of audit, we report that:

1. a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets;

b) The fixed assets have been physically verifed by the management during the year. In our opinion, the frequency of verifcation of the fixed assets is reasonable having regards to the size of the Company and nature of its assets. No material discrepancies were noticed on such verifcation.

c) It has been observed that no substantial part of fixed assets have been disposed off during the year, which can effects the going concern status of the Company.

2. a) The inventory includes land, construction work-in-progress, and construction and development material and development rights in identifed land. Physical verifcation of inventory (except stocks represented by development rights, confrmations for which have been obtained) have been conducted. In our opinion, the frequency of verifcation is reasonable.

b) The procedures of physical verifcation of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

c) The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verifcation.

3 a) Company has not granted any loans to parties covered under register maintained under Section 301 of the Companies Act, 1956.

b) Since the Company has not granted any loan the rate of interest and other terms and conditions does not apply.

c) Since the Company has not granted any loans, the terms of repayment do not apply.

d) There is no overdue amount in excess of Rs. 1 Lakh in respect of loans granted to companies, frms or other parties listed in the register maintained under Section 301 of the Companies Act, 1956.

e) The Company has taken loans from three entities covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year was Rs. 1,283.50 lakhs and the year- end balance of loans taken from such parties was Rs. NIL.

f) In our opinion, the rate of interest and other terms and conditions on which loans have been taken from companies, frms or other parties listed in the register maintained under section 301 of the Companies Act, 1956 are not, prima facie, prejudicial to the interest of the Company.

g) In respect of loans taken, the principal amount and interest amount are payable on demand in accordance with the terms and conditions, and the payment of principal and interest have been regular in accordance with such terms and conditions.

4 In our opinion and according to the information and explanations given to us, there exists an adequate internal control system commensurate with the size of the Company and the nature of its business, with regard to purchase of inventory, fixed assets and with regard to the sale of goods and services. During the course of our audit we have not observed any continuing failure to correct major weaknesses in internal control system of the Company.

5 a) According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements that need to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

b) In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees fve lakhs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time.

6 In our opinion and according to the information and explanations given to us the Company has not accepted any public deposit during the year under audit.

7 In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

8 According to information and explanations given to us, Central Government has not prescribed for the Com- pany any maintenance of cost records under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956.

9 a) The Company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education fund, employees state insurance, income-tax, sales-tax, wealth-tax, service-tax, custom duty, excise duty and other material statutory dues, as applicable to it.

Further, since the Central Government has till date not prescribed the amount of cess payable under sec- tion 441A of the Companies Act, 1956, we are not in a position to comment upon the regularity or other- wise of the Company in depositing the same

b) According to the information and explanations given to us, no undisputed amounts payables in respect of income-tax, sales-tax, wealth-tax, service-tax, custom duty and excise duty were in arrears at the year end, for a period of more than six months from the date they became payable.

c) According to the information and explanations given to us, there are no dues of income tax, sales-tax, service tax, customs duty and excise duty which have not been deposited on account of any dispute.

10 The Company has no accumulated losses at the end of the financial year. Further, the Company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year.

11 In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institution or a bank or debenture holders.

12 According to the information and explanations given to us, the Company has not granted any loans and ad- vances on the basis of security by way of pledge of shares, debentures and other securities.

13 In our opinion, the Company is not a chit fund or a nidhi mutual beneft fund/society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditors Report) Order, 2003 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) Order, 2003 are not applicable to the Company.

15 According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from banks or financial institutions which are not, prima facie, prejudicial to the interest of the Company.

16 According to the information and explanations given to us, the Company has not obtained any term loans dur- ing the financial year covered by our audit.

17 According to the information and explanations given to us and on an overall examination of the Balance Sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

18 According to the information and explanations given to us, the Company has not made any preferential allot- ment of shares to parties or companies covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(xviii) of the Companies (Auditors Report) Order, 2003 are not applicable to the Company.

19 According to the information and explanations given to us, the Company has not issued any debentures hence creating of charge or security is not applicable to the Company.

20 We have verifed the end use of money raised by right issue from the draft prospectus fled with SEBI, the offer document and as disclosed in the notes to the financial statements.

21 According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the course of our audit.

For T N Gala & Associates Chartered Accountants FRN - 102951W

Sd/- Talak N. Gala Proprietor M. No. 41186

Place: Mumbai Date : 23.04.2010

 
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