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Arihant Capital Markets Ltd.

BSE: 511605 Sector: Financials
NSE: N.A. ISIN Code: INE420B01028
BSE LIVE 15:40 | 27 Jun 60.95 -2.45
(-3.86%)
OPEN

64.15

HIGH

64.15

LOW

60.55

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 64.15
PREVIOUS CLOSE 63.40
VOLUME 600
52-Week high 76.80
52-Week low 31.95
P/E 8.51
Mkt Cap.(Rs cr) 127
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 64.15
CLOSE 63.40
VOLUME 600
52-Week high 76.80
52-Week low 31.95
P/E 8.51
Mkt Cap.(Rs cr) 127
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Arihant Capital Markets Ltd. (ARIHANTCAPITAL) - Auditors Report

Company auditors report

To

The Members

Arihant Capital Markets Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of ARIHANT CAPITALMARKETS LIMITED ("the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of the significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone 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 ofthese standalone 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 of 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.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

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 there under.

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 performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditor’s judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company’s preparation of the financial statementsthat give a true and fair view in order to design audit procedures that are appropriate inthe circumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany’s Directors as well as evaluating the overall presentation of the financialstatements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the standalone financialstatements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 ("theorder") issued by the Central Government of India in terms of sub-section (11) 143 ofthe act we give in the Annexure "A" a statement on the matters specified inthe 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 bestof our knowledge and belief were necessary for the purposes of our audit.

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (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 termsof Section 164 (2) of the Act.

(f) With respect to the adequacy of the internal financial control over financialreporting of the company and the operating effectiveness of such control refer to ourseparate report in 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 has disclosed the impact of pending litigations on its financialposition in its financial statements as referred to in Note 27 to the FinancialStatements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts as referred to in Note 7 & Note 8 to the financial statements.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For Arora Banthia & Tulsiyan
Chartered Accountants
Firm No :007028C
CA Ajay Tulsiyan
Partner
Membership No. : 74868
Indore May 24th 2016

ANNEXURE ‘‘A" REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF"REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATETO THE MEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31STMARCH 2016

1. a) The Company has maintained proper records to show full particulars includingquantitative details and situation of its fixed assets.

b) All fixed assets of the Company are physically verified by the management at regularintervals which in our opinion is reasonable considering the size of the Company and thenature of assets. During the year as informed to us by management no materialdiscrepancies have been noticed on such verification.

c) The title deeds of immovable properties are held in the name of the Company.

2. The securities held as stock in trade have been verified by the Management with thestatement of holdings provided by depository participants and brokers at reasonableintervals. In our opinion the frequency of verification is reasonable and no materialdiscrepancies between the book records and the statement of holdings provided by NSDLother depository participants and brokers have been noticed.

3. The Company has granted unsecured loan to one company covered in the registermaintained under section 189 of The Companies Act 2013.

(a) There are no stipulations as to schedule of repayment of principal and payment ofinterest. The rate of interest is stipulated and paid accordingly.

(b) In case of loan granted to the body corporate listed in the register maintainedunder section 189 of the Act the borrower has been regular in the payment of principaland interest as stipulated.

(c) As per records of the Company and according to the information and explanationgiven to us no amount of principal and interest is overdue.

4. 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 loans investment guarantees and security.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from public.

6. We are informed that maintenance of cost records has not been prescribed by theCentral Government under section 148 of The Companies Act 2013 in respect of theactivities carried on by the Company.

7. a) As per the records of the Company the company is regular in depositing thestatutory dues including provident fund income tax service tax cess and other materialstatutory dues applicable to it with the appropriate authorities. According to theinformation and explanations given to us no undisputed amount in respect of income taxsales tax service tax custom duty excise duty cess applicable to it is outstanding asat the last day of the financial year concerned for a period of more than six months fromthe date they became payable.

b) According to the information and explanations given to us there are no dues ofincome tax sales tax service tax custom duty excise duty cess which have not beendeposited on account of any dispute.

Name of the Statute Nature of Dues Financial Year Amount (Rs.) Forum where dispute is pending
Income Tax Act 1961 Income Tax 2012-13 2497800 Commissioner of Appeals

8. The Company has not defaulted in payments of any dues to financial institutionsbanks or debenture holders. The Company did not have any dues to financial institutions ordebenture holder during the year.

9. According to the information and explanation given to us and the record examined byus the Company has not raised any money by way of initial public offer or further publicoffer. Hence clause 3(ix) of the order is not applicable.

10. Based upon the audit procedures performed and information and explanations given bythe management we report that no material fraud on or by the Company has been noticed orreported during the period covered by our audit.

11. According to the information and explanation given to us and the record examined byus the Company has provided managerial remuneration during the year in accordance withthe requisite approvals mandated by the provisions of section 197 read with Schedule V tothe Companies Act. 12. The Company is not Nidhi Company. Hence clause 3(xii) of the orderis not applicable.

13. According to the information and explanation given to us and the record examined byus all the transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 where applicable and the details have been disclosed infinancial statements etc. as required by the applicable accounting standards.

14. According to the information and explanation given to us and the record examined byus the company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year. 15. According to the informationand explanation given to us the Company has not entered into any non cash transactionswith directors or persons connected with him.

16. The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Arora Banthia & Tulsiyan
Chartered Accountants
Firm No :007028C
CA Ajay Tulsiyan
Partner
Membership No. : 74868
Indore May 24th 2016

ANNEXURE "B" AS REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING OF"REPORT ON LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THEMEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31STMARCH 2016

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 ArihantCapital Market Limited ("the Company") as of March 31 2016 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding 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 judgment 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that 1. pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; 2. provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; 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 March 31 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 Arora Banthia & Tulsiyan
Chartered Accountants
Firm No :007028C
CA Ajay Tulsiyan
Partner
Membership No. : 74868
Indore May 24th 2016