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Arihant Capital Markets Ltd.

BSE: 511605 Sector: Financials
NSE: N.A. ISIN Code: INE420B01028
BSE LIVE 15:42 | 16 Oct 159.35 4.40
(2.84%)
OPEN

160.00

HIGH

162.30

LOW

156.05

NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 160.00
PREVIOUS CLOSE 154.95
VOLUME 22146
52-Week high 176.40
52-Week low 40.20
P/E 18.03
Mkt Cap.(Rs cr) 332
Buy Price 159.35
Buy Qty 254.00
Sell Price 0.00
Sell Qty 0.00
OPEN 160.00
CLOSE 154.95
VOLUME 22146
52-Week high 176.40
52-Week low 40.20
P/E 18.03
Mkt Cap.(Rs cr) 332
Buy Price 159.35
Buy Qty 254.00
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 2017 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 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 standalone financial statements.

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 2017 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 ("the order")issued by the Central Government of India in terms of sub-section (11) 143 of the act wegive in the Annexure Rs.A" a statement on the matters specified in the paragraph 3and 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 2017 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2017 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 did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.

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

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8thNovember 2016 to 30th December 2016. Based on audit procedures and relying onthe management representation we report that the disclosures are in accordance with thebooks of accounts maintained by the Company and as produced to us by the management. ReferNote 34 to Financial Statements.

For Arora Banthia & Tulsiyan

Chartered Accountants

Firm No : 007028C

CA Ajay Tulsiyan

Partner

Membership No. : 74868

Indore May 27th 2017

ANNEXURE "A" REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ONOTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE Members OFARIHANT CAPITAL MARKETS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH2017

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 three companies covered in the registermaintained under section 189 of The Companies Act 2013.

(a) The rate of interest and other terms and conditions on which the loan had beengranted to the body corporate listed in the register maintained under section 189 of theAct are not prejudicial to the interest of the Company.

(b) There are no stipulations for the repayment schedule however the rate of interestis stipulated for the 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 wherever 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.

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 order is notapplicable.

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 information and explanation given to us the Company has notentered into any non cash transactions with 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 27th 2017

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 2017

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 31st 2017 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. 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 the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

2. Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorizations of management and Directors of the Company;

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the Company's assets that could have amaterial 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 31st 2017based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Arora Banthia & Tulsiyan

Chartered Accountants

Firm No : 007028C

CA Ajay Tulsiyan

Partner

Membership No. : 74868

Indore May 27th 2017.