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Aravali Securities & Finance Ltd.

BSE: 512344 Sector: Financials
NSE: ARAVALISEC ISIN Code: INE068C01015
BSE LIVE 15:10 | 08 Dec 2.72 0.11
(4.21%)
OPEN

2.72

HIGH

2.72

LOW

2.72

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 2.72
PREVIOUS CLOSE 2.61
VOLUME 11
52-Week high 6.41
52-Week low 2.47
P/E
Mkt Cap.(Rs cr) 4.12
Buy Price 2.72
Buy Qty 99.00
Sell Price 0.00
Sell Qty 0.00
OPEN 2.72
CLOSE 2.61
VOLUME 11
52-Week high 6.41
52-Week low 2.47
P/E
Mkt Cap.(Rs cr) 4.12
Buy Price 2.72
Buy Qty 99.00
Sell Price 0.00
Sell Qty 0.00

Aravali Securities & Finance Ltd. (ARAVALISEC) - Auditors Report

Company auditors report

To the Members of

Aravali Securities & Finance Limited

Report on the Financial Statements

We have audited the accompanying financial statements of ARAVALI SECURITIES &FINANCE LIMITED (''the Company") which comprise the Balance Sheet as at31st March 2016 and the statement of Profit and Loss and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ('the Act') with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on ouraudit. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

(a) In the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2016;

(b) In the case of the Statement of Profit and Loss of the Loss of the Company for theyear ended on that date; and

(c) In the case of the Cash Flow Statement of the Cash Flows of the Company for theyear ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order'')issued by the Central Government in terms of sub- section (11) of Section 143of the Actwe give in the 'Annexure A' statement on the matters specified in paragraphs 3 and 4 ofthe Order.

2. As required under the provisions of Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof 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 theCompany so far as appears form our examination of those books:

c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account:

d. In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014;

e. On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2016 from being appointed as a director in terms of Section164 (2) of the Act;

f. With respect to the adequacy of internal financial controls over financial reportingof the Company and operating effectiveness of such controls refer to our separate reportin 'Annexure-B'; and

g. 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 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition except the sales tax liability pending in appeals/ rectification of Rs.160969asreferred in note 1.10

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

For SALARPURIA & PARTNERS
Chartered Accountants
Sd/-
KAMAL KUMAR GUPTA
Place : Camp Gurgaon Partner
Dated : 27th May 2016. Membership No. 89190

ANNEXURE-A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements of ourreport of even date to the members of Aravali Securities & Finance Limited as at andfor the year ended 31st March 2016)

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

b. The fixed assets of the Company were physically verified by the management duringthe year. In our opinion frequency of physical verification is reasonable having regardto the size of the operation of the Company. On the basis of explanations received in ouropinion no discrepancy between the book records and physical inventory has been noticedin respect of assets physically verified.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii As explained to us the inventories were physically verified during the year by themanagement at reasonable intervals and no material discrepancy was noticed on physicalverification except to the extent of shares not registered in the name of the Company asmentioned in Note 11.

iii. The Company has given loan to a Company covered in the register maintained underSection 189 of the Companies Act 2013:

a. In our opinion and according to the information given to us the terms andconditions of the loan given by the Company our prima facie not prejudicial to theinterest of the Company.

b. The terms of arrangement do not stipulate any repayment schedule and the loan isrepayable on demand. However the loan along with interest has been repaid in full andthere are no overdue amounts as at the year-end in respect of both principal and interest.

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 Companies Act 2013in respect of grant of loans making investments and providing guarantees and securities.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public.

vi. The Central Government has not prescribed maintenance of the cost records undersection 148(1) of the Companies Act 2013 in respect of any of the company's activities.

vii. a. According to the information and explanations given to us and the books andrecords as produced and examined by us in our opinion the undisputed statutory duesincluding in respect of provident fund employees' state insurance income- tax salestax service tax duty of customs duty of excise value added tax cess and otherstatutory dues as applicable have been regularly deposited by the Company during the yearwith the appropriate authorities. There were no undisputed statutory dues as at the lastday of the financial year outstanding for a period of more than six months from the datethey became payable.

b. According to the records of the company there were no dues of income tax servicetax duty of customs duty of excise value added tax which have not been deposited onaccount of disputes. The particulars of dues of sales tax as at 31st March 2016 whichhave not been deposited on account of disputes are as under:

Name of the dues Period Amount under dispute not yet deposited Forum before whom pending
Sales Tax Financial year 1984-85 1985-86 2000-01 and 2001-02 Rs. 160969 Asst. Commissioner of Sales Tax (Appeals) Delhi

viii. The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year except sum of Rs. 142000 received from Fully Convertiblepartly paid up Debentures which were convertible into fully paid up equity shares andwhich have not been converted pending allotment money in arrears as mentioned in Note 1.2& Note 4.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debit instruments) and term loans during the period. Accordinglyparagraph 3 (ix) of the Order is not applicable to the Company.

x. In our opinion and according to the information and explanations given to us nofraud by the Company or on the Company by its officers or employees have been noticed orreported during the year.

xi. The Company has not paid/provided for managerial remuneration and accordinglyparagraph 3 (xi) of the Order is not applicable to the Company.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is notapplicable to the Company.

xiii. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act and details of such transactions have beendisclosed in the financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe period. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3 (xv)of the Order is not applicable to the Company.

xvi. The Company is required to be registered under section 45-1A of the Reserve Bankof India Act 1934 and has obtained registration under the said section.

For SALARPURIA & PARTNERS
Chartered Accountants
Sd/-
KAMAL KUMAR GUPTA
Place : Camp Gurgaon Partner
Dated : 27th May 2016. Membership No. 89190

ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AravaliSecurities & Finance Limited ("the Company") as of 31st March 2016 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

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 Company's internal financial controls systemover financial reporting.

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 authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent 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 the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For SALARPURIA & PARTNERS
Chartered Accountants
Sd/-
KAMAL KUMAR GUPTA
Place : Camp Gurgaon Partner
Dated : 27th May 2016. Membership No. 89190

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