ARIHANT CAPITAL MARKETS LIMITED
Report on the Financial Statements
We have audited the accompanying standalone financial statements of ARIHANT CAPITALMARKETS LIMITED (the Company) which comprise the Balance Sheet as at 31March 2015 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.
Managements Responsibility for the Financial Statements
The Companys 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 financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
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 theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances but not for the purpose ofexpressing an opinion on whether the Company has in place an adequate internal financialcontrols system over financial reporting and the operating effectiveness of such controls.An audit also includes evaluating the appropriateness of the accounting policies used andthe reasonableness of the accounting estimates made by the Companys Directors aswell as evaluating the overall presentation of 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.
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 31 March 2015 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2015 (theorder) issued by the Central Government of India in terms of subsection (11) 143 ofthe act we give in the Annexure 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 31March 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2015 from being appointed as a director in terms of Section164 (2) of the Act.
(f) With respect to the other matters to be included in the Auditors 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.
For Arora Banthia & Tulsiyan
CA Ajay Tulsiyan
Membership No. : 74868
Indore 29 May 2015
Annexure referred to in paragraph 1 under the heading of report on other legaland regulatory requirements of our report of even date to the members of ArihantCapital Markets Limited on the accounts for the year ended 31 March 2015
1. a) The Company has maintained proper records to show full particulars includingquantitative details and situation of its fixed assets.
b) All fixed assets have not been physically verified by the management during the yearbut there is a verification programme to ensure that all assets are verified at least oncein every three years which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. The discrepancies noticed on verification were notmaterial and have been properly dealt with in the books of accounts.
2. a) The securities held as stock in trade have been verified by the Management withthe statement of holdings provided by depository participants and brokers at reasonableintervals. In our opinion the frequency of verification is reasonable.
b) In our opinion the procedures of confirmation of securities held as stock in tradefollowed by the Management are reasonable and adequate in relation to the size of theCompany and the nature of its business.
c) On the basis of our examination of the records of the Company relating to securitiesheld as stock in trade in our opinion the Company has maintained proper records of stockin trade and no material discrepancies between the book records and the statement ofholdings provided by NSDL other depository participants and brokers have been noticed.
3. The Company has granted unsecured loan to two companies covered in the registermaintained under section 189 of The Companies Act 2013.
(a) The receipt of principal amounts and interest if any in respect of such loansduring the year has been regular/ as per stipulation.
(b) As per records of the company and according to the information and explanationsgiven 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 an adequate internal control procedure commensurate with the size and natureof its business with regard to the purchase of inventory and fixed assets and for thesale of goods and services. During the course of our audit we have not observed anycontinuing failure to correct major weaknesses in internal controls.
5. In our opinion and according to the information and explanations given to us theCompany has not accepted deposits from the 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 by the company.
7. a) As per the records of the Company the Company is generally regular in depositingthe statutory dues including provident fund income tax wealth tax service tax cess andother material statutory dues applicable to it with the appropriate authorities. Accordingto the information and explanations given to us no undisputed amount in respect of incometax sales tax service tax custom duty wealth tax excise duty cess applicable to itis outstanding as at the last day of the financial year concerned for a period of morethan six months from the date they became payable.
b) According to the information and explanations given to us and on the basis ofexamination of records of the Company provident fund sales tax income tax wealth taxcess which have not been deposited on account of dispute are given below:
|Name of the Statute ||Nature of Dues ||Financial Year ||Amount (Rs) ||Forum where dispute is pending |
|Income Tax Act 1961 ||Income Tax ||2010-2011 ||550703 ||Commissioner of Appeals |
c) According to the information and explanations given to us and on the basis ofexamination of records of the Company the amount required to be transferred to investoreducation and protection fund in accordance with the relevant provisions of the CompaniesAct 1956 (1 of 1956) and rules made there under has been transferred to such fund withintime.
8. The Company has no accumulated losses as at 31 March 2015 and has not incurred cashloss in the current financial year and the immediately preceding financial year.
9. The Company has not defaulted in payments of any dues to financial institutionsbanks or debenture holders.
10. In our opinion and according to the information and explanations given to us theterms & conditions on which the Company has given guarantees for loan taken by otherparty from bank or financial institution are not prejudicial to the interest of theCompany.
11. According to the information and explanations given to us and the record examinedby us the Company has not taken any term loans.
12. Based upon the audit procedures performed and information and explanations given bythe management we report that no fraud on or by the Company has been noticed or reportedduring the period covered by our audit.
For Arora Banthia & Tulsiyan
CA Ajay Tulsiyan
Membership No. : 74868
Indore 29 May 2015