CMS BUSINESS SCHOOL

ASSESSSMENT -1

ADVANCED FINANCIAL REPORTING

SUBMITTED TO

-DR.PREETHA CHANDRAN

BY:-

VISHWAS N

SEC: CF-1

ROLL NO: 19MBAR0525

 ANANT RAJ LTD
Financial statement Analysis:
1. Has posted Standalone Net Profit after tax of ` 4640.26 Lakhs as compared to ` 4286.84 Lakhs
during the previous year.
2. The “Moments Mall” at Kirti Nagar, New Delhi, is being run through a wholly owned subsidiary
of the Company, namely Anant Raj Projects Limited is an operational and revenue generating
asset of the Company
3. The Company has transferred a sum of ` 4640.26 Lakhs to the Surplus for the financial year
ended March 31, 2019.

4. The Company had accordingly transferred sum of ` 7,21,763/- in the unpaid / unclaimed
dividend for the year 2010-11 to the Investor Education and Protection Fund (IEPF) established
by the Central Government.
5. The Board of Directors of your Company, subject to approval of shareholders at the ensuing
Annual General Meeting, has recommended a dividend @ 12% (Re. 0.24 per equity share of ` 2/-
each) for the year ended March 31, 2019. The cash outflow on account of dividend will be `
708.23 lakhs and corporate dividend tax would be ` 145.58 lakhs.
6. Investments have been increased. There are made more in non-current assets compared to current
assets
7. The paid-up share capital as on March 31, 2019 was ` 59,01,92,670 divided into 29,50,96,335
equity shares of ` 2/- each.

8. During the period under review, there has been no change in the nature of business of the
Company
9. There are no significant & material orders passed by the Regulators against the Company during
the year under review
10. Pursuant to the provision of Section 143 (12) of the Companies Act, 2013 and Rules frame there
under, that there have been no instance of fraud reported by the Auditors either to the Company
or to the Central Government
11. Value has been decreased due to cause of depreciation
12. that the directors had selected such accounting policies and applied them consistently and made
judgements and estimates that are reasonable and prudent so as to give a true and fair view of the
state of affairs of the Company at the end of the financial year and of the profit of the Company
for that period.
13. During the financial year under review, no Corporate Insolvency Resolution Process (CIRP) was
initiated against your Company, under the Insolvency and Bankruptcy Code, 2016” (IBC) as
amended
14. The percentage increase in the median remuneration of employees in the financial year: 6.64%
(The rise was insignificant due to recessionary condition prevalent in the real estate sector).The
average net profit of the Company for the last three financial years is 7,256.82 Lakhs. Prescribed
CSR expenditure at 2% of the amount is ` 145.14 Lakhs. Total amount spent for the financial
year ` 56.67 Lakhs.
 Amount unspent, if any: 88.47
15. The Board of directors of the Company in its meeting held on August 29, 2018 approved draft
Composite Scheme of Arrangement for Amalgamation and Demerger (“Scheme”) involving the
Amalgamation of Anant Raj Agencies Private Limited with and into Anant Raj Limited and
immediately
16. The Company has passed Special Resolution for increase in borrowing limit up to ` 2750 Crores

17. The Company’s revenues increased 4.20% from ` 480.13 Crores in FY2017-18 to ` 500.28
Crores in FY2018-19. In the review period, 85.76% of the total revenues came from residential
sales while the remaining 14.24% came from rentals and services.
18. The operating EBITDA decreased 2.30 % from ` 159.47 Crores in FY2017-18 to ` 155.81 Crores
in FY2018-19 and PAT increased 0.74% from ` 65.98 Crores in FY2017-18 to ` 66.47 Crores in
FY2018-19. The EBITDA and PAT margins during FY2018-19 were 29.74% and 12.69%
respectively
19. The total expenses (operating, non-cash and finance) of the Company increased by 1.24% from `
450.80 Crores in FY2017-18 to ` 456.38 Crores in FY2018- 19. The operating expenses
decreased 0.48% to ` 368.06 Crores. The operating expenses accounted for 80.65% of the total
expenses. Depreciation (non-cash) decreased by 2.04% to ` 25.52 Crores while finance cost
increased by 14.37% to ` 62.80 Crores
20. Other income stood at ` 23.59 Crores in FY2018-19 compared to ` 49.19 Crores in the
corresponding previous year
21. The total tax expenses for FY2018-19 including current, deferred tax and tax expense of earlier
years amount to ` 14.15 Crores
22. The Shareholders’ fund comprising Share Capital and Reserves and Surplus increased by 0.80%
from ` 4,186.71Crores as on March 31, 2018 to ` 4,220.26 Crores as on March 31, 2019. Share
capital as on March 31, 2019 stood at ` 59.02 Crores comprising 2,95,096,335 equity shares of `
2 each. Reserves and Surplus were` 4,161.24 Crores as on March 31, 2019 as compared to `
4,127.69 Crores as on March 31, 2018.
23. The total capital employed by the Company including shareholders’ fund, deferred tax liabilities
and external debt increased 3.41% from ` 6,804.24 Crores as on March 31, 2018 to ` 7,036.00
Crores as on March 31, 2019.
24. The total borrowed funds of the Company stood at ` 2,797.46 Crores as on March 31, 2019.

25. The Total Assets of the Company increased from ` 7,473.12 Crores as on March 31, 2018 to `
7,766.33 Crores as on March 31, 2019. The net fixed assets as proportion of total assets stood at
38.59% at the end of the year.
26. The Fixed Assets increased 0.56% from ` 2,980.66 Crores as on March 31, 2018 to ` 2,997.28
Crores as on March 31, 2019. It primarily comprises Land and Building (includes Site
development), Plants and Machinery etc. It also includes a small portion of capital work in
progress amounting to ` 188.21 Crores.
27. Total investments of the Company decreased from ` 593.74 Crores as on March 31, 2018 to `
550.93 Crores as on March 31, 2019.
 28. Debtors increased from ` 124.28 Crores as on March 31, 2018 to ` 131.43 Crores as on March 31,
2019.
29. Loan and advances stood at ` 975.78 Crores as on March 31, 2019 comprising 12.56% of the
total assets.
30. The Company has cash and bank balance of ` 102.31 Crores as on 31st March, 2019 compared to
` 273.59 Crores as on 31st March, 2018.
31. Current Liabilities and provisions stood at ` 1,257.70 Crores as on March 31, 2019 compared to ` 1,109.40 as on March
31, 2018. Current Liabilities and Provisions as at March 31, 2019 comprises of Trade payables at ` 13.08 Crores, short
term borrowings at ` 132.06 Crores, other current liabilities of ` 1,107.81 Crores (including current maturities of Long
term Debt of ` 520.69 Crores) and short term provisions at ` 4.75 Crores.
32. The Company recorded Net Worth of ` 4,261.24 crore in FY 2018-19 against ` 4,229.95 crore in FY 2017-18. Total
Debt (excluding current maturities of long-term borrowings) increased to ` 2,211.50 crore in FY 2018-19 from `
2,158.73 crore in FY 2017-18. Cash and Cash Equivalents stood at ` 65.91 crore in FY 2018-19 as against ` 216.48
crore in FY 2017-18.
33. The Company has a great dividend track report and has consistently declared dividends for the last 5 years. For the
year ending March 2019, ARL has declared an equity dividend of 12% amounting to ` 0.24 per share, subject to the
approval of shareholders.

34. TOTAL DEBT (excluding current maturities of long-term borrowings) (last year ` 2158.72 crore)

Analysis of Directors report:-

The Directors place on record their appreciation for the assistance, help and guidance
provided to the Company by the Bankers, Financial Institution(s) and Authorities of Central and State
Government(s) from time to time. During the financial year under review, no Corporate Insolvency
Resolution Process (CIRP) was initiated against your Company, under the Insolvency and Bankruptcy
Code, 2016” (IBC) as amended. The Board of Directors of your Company appointed M/s G.K Choksi &
Co. Chartered Accountants as the Internal Auditors of the Company pursuant to the provisions of Section
138 of the Companies Act, 2013 for Financial Year 2018-2019 and the reports on periodical basis
submitted were place before the audit committee and Board of Directors. The Company has received
Notice regarding Non-Compliance / Delayed Compliance under Regulation 33 for submission of
Annually/Quarterly financial results of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 for the quarter ended on March, 2018 and June, 2018. The Concerned Stock Exchanges
had levied the fine for the quarter ended on March, 2018 and June, 2018 and the same was also paid to
Stock Exchanges In Compliance with the provisions of Sections 139 and other applicable provisions of
the Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutory
modification (s) / re-enactment (s)/ amendment(s) thereof, for the time being in the force), M/s Vinod
Kumar Bindal& Co., Chartered Accountant (Firm Registration No. 003820N), The Company has in place
an established internal financial control system to ensure the orderly and efficient conduct of its business,
the safeguarding of its assets, the prevention and detection of frauds and errors and proper recording of
financial & operation information, compliance of various internal control and other regulatory/statutory
compliances. All internal audit findings and control systems are periodically reviewed by the Audit
committee of the Board of Directors, which provides by the Audit Committee of the Board of Directors
which provides strategic guidance on internal control. The Nomination and Remuneration Committee &
Audit Committee has also reviewed and considered the collective feedback of the whole of evaluation
process.
 By order of the Board of Directors
For Anant Raj Limited
Sd/-
Ashok Sarin
(DIN: 00016199)

Analysis of Auditors report:-

In Compliance with the provisions of Sections 139 and other applicable provisions of the
Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutory
modification (s) / re-enactment (s)/ amendment(s) thereof, for the time being in the force), M/s Vinod
Kumar Bindal& Co., Chartered Accountant (Firm Registration No. 003820N), were appointed as
statutory auditors for a period of five consecutive years commencing from the conclusion of 32nd AGM
(Annual General Meeting) held on 29th September 2017 till the conclusion . Pursuant to the provision of
Section 143 (12) of the Companies Act, 2013 and Rules frame there under, that there have been no
instance of fraud reported by the Auditors either to the Company or to the Central Government. As such
there is nothing to report by the Board under section 134(3)(ca) of the Companies Act, 2013. Your
Company had adopted IND AS with effect from 1st April, 2016 pursuant to notification dated February
15, 2015 under Section 133 of the Companies Act, 2013 (hereinafter referred to as “The Act”) issued by
the Ministry of Corporate Affairs, notifying the Companies (Indian Accounting Standard) Rules, 2015.
Your Company has now prepared the IND AS Financials for the year ended March 31, 2019 along with
comparable financials for the year ended March 31, 2018. The Quarterly results published by the
Company for Financial Year 2018-19 are also based on IND AS. We conducted our examination in
accordance with the Guidance Note on Reports or Certificates for Special Purposes issued by the Institute
of Chartered Accountants of India (‘ICAI’). The Guidance note requires that we comply with the ethical
requirements of the Code of ethics issue by the Institute of Chartered Accountants of India. We have
complied with the relevant applicable requirements of the standard on Quality Control (SQC) 1, quality
control for firms that perform audits and reviews of historical financial information, and other assurance
and related services engagements. In our opinion and to the best of our information and according to the
explanations given to us, we certify that the Company has complied with the conditions of Corporate
Governance as specified in regulations 17 to 21, clause (b) to (i) of sub-regulation (2) of regulation 46 and
paragraphs C, D and E of schedule V of the Listing regulations, as applicable. This certificate is issued
solely for the purpose of complying with the requirements of the Listing Regulations, and it should not be
used by any other person or for any other purpose.
For Vinod Kumar Bindal & Co.
Chartered Accountants
By the hand of
Sd/-
Shiv Kumar Arora
Membership No 515204