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Arihant Capital Markets Ltd.

BSE: 511605 Sector: Financials
NSE: N.A. ISIN Code: INE420B01028
BSE 00:00 | 24 May 62.45 2.05
(3.39%)
OPEN

63.95

HIGH

63.95

LOW

60.00

NSE 05:30 | 01 Jan Arihant Capital Markets Ltd
OPEN 63.95
PREVIOUS CLOSE 60.40
VOLUME 3613
52-Week high 109.80
52-Week low 47.60
P/E 7.73
Mkt Cap.(Rs cr) 130
Buy Price 61.30
Buy Qty 487.00
Sell Price 62.50
Sell Qty 94.00
OPEN 63.95
CLOSE 60.40
VOLUME 3613
52-Week high 109.80
52-Week low 47.60
P/E 7.73
Mkt Cap.(Rs cr) 130
Buy Price 61.30
Buy Qty 487.00
Sell Price 62.50
Sell Qty 94.00

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 ofARIHANT CAPITAL MARKETS LIMITED ("the Company") which comprise the BalanceSheet as at 31 March 2018 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin Section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules2014.This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of theAct for safeguarding of the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalonefinancial statements based on our audit.

We have taken into account the provisions of theAct the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of theAct and the Rules made there under.

We conducted our audit in accordance with the Standards onAuditingspecified under Section 143(10) of theAct.Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. In making thoserisk assessments the auditor considers internal financial control relevant to theCompany's preparation of the financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.

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 theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31 March 2018 and its profit and its cash flows 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 of India in terms of sub-section(11) 143 of the act we give in the Annexure "A" a statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.

2. As required by Section 143 (3) of theAct we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

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

(d) In our opinion the aforesaid financial statements comply with theaccounting standards specified under Section 133 of theAct read with Rule 7 of theCompanies (Accounts) Rules 2014

(e) On the basis of the written representations received from thedirectors as on 31 March 2018 taken on record by the Board of Directors none of thedirectors is disquali ed as on 31 March 2018 from being appointed as a director in termsof Section 164 (2) of theAct.

(f) With respect to the adequacy of the internal financial control overfinancial reporting of the company and the operating effectiveness of such control referto our separate report inAnnexure "B"; and (g) With respect to the other mattersto be included in the Auditor's Report in accordance with Rule 11 of the Companies (AuditandAuditors) Rules 2014 in our opinion and to the best of our information and accordingto the explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements as referred to in Note 28 to the FinancialStatements.

ii. The Company did not have any long-term contracts includingderivative contracts; as such the question of commenting on any material foreseeablelosses thereon does not arise.

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

For Dinesh Ajmera & Associates

Chartered Accountants

Firm Reg. No:011970C

CA Dinesh Ajmera

Partner

Membership No. : 402629

Indore May 28 2018

ANNEXURE ''A" REFERREDTO IN PARAGRAPH 1 UNDERTHE 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 Y EAR ENDED 31MARCH 2018

1. a) The Company has maintained proper records to show fullparticulars including quantitative details and situation of its fixed assets.

b) All fixed assets of the Company are physically veri ed by themanagement at regular intervals which in our opinion is reasonable considering the sizeof the Company and the nature of assets. During the year as informed to us by managementno material discrepancies have been noticed on such veri cation.

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

2. The securities held as stock in trade have been veri ed by theManagement with the statement of holdings provided by depository participants and brokersat reasonable intervals. In our opinion the frequency of veri cation is reasonable and nomaterial discrepancies between the book records and the statement of holdings provided byNSDL other depository participants and brokers have been noticed.

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

(a) The rate of interest and other terms and conditions on which theloan had been granted to the body corporate listed in the register maintained undersection 189 of theAct are not prejudicial to the interest of the company.

(b) There are no stipulations for the repayment schedule however therate of interest is stipulated for the loan granted to the body corporate listed in theregister maintained under section 189 of the Act. The borrower is regular in the paymentof principal and interest wherever stipulated.

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

4. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theCompaniesAct 2013 in respect of loans investment guarantees and security.

5. In our opinion and according to the information and explanationsgiven to us the Company has not accepted deposits from public.

6. We are informed that maintenance of cost records has not beenprescribed by the Central Government under section 148 of The CompaniesAct 2013 inrespect of the activities carried on by the Company

7. a) As per the records of the Company the company is regular indepositing the statutory dues including provident fund income 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 excise duty cess applicable to it isoutstanding as at the last day of the financial year concerned for a period of more thansix months from the date they became payable.

b) According to the information and explanations given to us there areno dues of income tax sales tax service tax custom duty excise duty cess which havenot been deposited on account of any dispute.

8. The Company has not defaulted in payments of any dues to financialinstitutions banks or debenture holders. The Company did not have any dues to financialinstitutions or debenture holder during the year.

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

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

11. According to the information and explanation given to us and therecord examined by us the Company has provided managerial remuneration during the year inaccordance with the requisite approvals mandated by the provisions of section 197 readwith

ScheduleV to the CompaniesAct.

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 therecord examined by us all the transactions with the related parties are in compliancewith sections 177 and 188 of CompaniesAct 2013 where applicable and the details have beendisclosed in financial statements etc. as required by the applicable accountingstandards.

14. According to the information and explanation given to us and therecord examined by us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.

15. According to the information and explanation given to us theCompany has not entered into any non cash transactions with directors or persons connectedwith him.

16. The Company is not required to be registered under section 45-IA ofthe Reserve Bank of IndiaAct 1934.

For Dinesh Ajmera & Associates

Chartered Accountants

Firm Reg. No:011970C

CA Dinesh Ajmera

Partner

Membership No. : 402629

Indore May 28 2018

ANNEXURE "B" AS REFERRED TO IN PARAGRAPH 2(f) UNDER THEHEADING OF "REPORT ON LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVENDATE TO THE MEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED31 MARCH 2018

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of Arihant Capital Market Limited ("the Company") as of March 31 2018in conjunction with our audit of the standalone financial statements of the Company forthe year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the CompaniesAct 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over

financial reporting and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting assessing the risk that amaterial weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles.A company's internal financial control overfinancial reporting includes those policies and procedures that

1. pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; 2. provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; 3.provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at March 31 2018 basedon the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance NoteonAudit of Internal Financial Controls over Financial Reporting issued by the Institute ofCharteredAccountants of India.

For Dinesh Ajmera & Associates

Chartered Accountants

Firm Reg. No:011970C

CA Dinesh Ajmera

Partner

Membership No. : 402629

Indore May 28 2018