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Arihants Securities Ltd.

BSE: 531017 Sector: Financials
NSE: N.A. ISIN Code: INE190D01015
BSE 00:00 | 18 Jun 7.14 0.34
(5.00%)
OPEN

7.14

HIGH

7.14

LOW

6.50

NSE 05:30 | 01 Jan Arihants Securities Ltd
OPEN 7.14
PREVIOUS CLOSE 6.80
VOLUME 610
52-Week high 7.48
52-Week low 3.10
P/E 54.92
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 7.14
CLOSE 6.80
VOLUME 610
52-Week high 7.48
52-Week low 3.10
P/E 54.92
Mkt Cap.(Rs cr) 4
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Arihants Securities Ltd. (ARIHANTSSECUR) - Auditors Report

Company auditors report

We have audited the accompanying financial statements of M/s. Arihant's SecuritiesLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2020 the Statement of Profit and Loss Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records in accordancewith the provision of the Act for safeguarding of the assets of the Company and forpreventing and detecting the frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of internal financial control thatwere operating 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.

Auditors' 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 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 procedure to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accountingpolicies used and the reasonableness of the accounting estimates made by management aswell as evaluating of 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.

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:

i. in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2020;

ii. in the case of the Statement of Profit and Loss of the Loss for the year ended onthat date; and

iii. in the case of the Cash Flow Statement of the cash flows for the year ended onthat date. Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order.

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 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 aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e. On the basis of written representations received from the directors as on 31 March

2020 taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2020 from being appointed as a director in terms of Section 164(2) of theAct.

f. With respect to the adequacy of the Internal Financial Controls over FinancialReporting of the company and the operating effectiveness of such controls 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 the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during year is inaccordance with the provision of section 197 of the Act.

h. With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditor's) Rules2014 and to the best of ourinformation and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition

ii. The Company did not have any long-term contracts including derivatives contractsfor which there were any material foreseeable losses.

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

Place: Chennai K NANDHISWARAN FCA
Date: 31st July 2020 Membership No: 207644

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT (Referred to in paragraph 7 of our report ofeven date under the caption "Report on Other Legal

and Regulatory Requirements)

The Annexure A referred to in our report to the members of Arihant's Securities Limited("the Company") for the year ended 31st March 2020. We report that:

i. (a) The company has maintained proper records showing full particulars includingquantitative

details and situation of its fixed assets.

(b) As explained to us fixed assets have been physically verified by the management atreasonable intervals; no material discrepancies were noticed on such verification.

(c) The company has immovable property.

ii. As explained to us inventories have been physically verified during the year bythe management at reasonable intervals. No material discrepancy was noticed on physicalverification of shares by the management as compared to book records.

iii. The Company has not granted any loans secured or unsecured to/from companiesfirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Act.

iv. The company has not provided any loans investments guarantees or securitiescovered under Sections 185 and 186 of the Act.

v. The Company has not accepted any deposits from the public covered under section 73to 76 of the Companies Act 2013.

vi. The Company is not required to maintain the Cost Record under sub-section (1) ofSection 148 of the Act hence reporting under clause 3(vi) of the Order is not applicable.

vii. (a) According to the information and explanations given to us and on the basis ofour

examination of the books of account the Company is regular in depositing withappropriate authorities undisputed statutory dues in respect of Tax deducted at source andother material statutory dues applicable to it. According to the information andexplanations given to us no undisputed amounts payable in respect of above were inarrears as at 31st March 2020 for a period of more than six months from thedate they became payable.

(b) According to the information and explanations given to us there are no dues ofProvident Fund Tax deducted at source Excise Duty Service Tax Customs Duty EmployeesState Insurance Fund and Cess which have not been deposited with appropriate authoritieson account of any dispute.

viii. Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofloans or borrowings to a financial institution bank Government or dues to debentureholders.

ix. According to the information and explanations given to us the Company has notraised any money by way of public offerings.

x. Based on the audit procedures performed and the information and explanations givento us and during the course of our examination of the books and records of the company wereport that no fraud on or by the Company has been noticed or reported during the yearnor have we been informed of such case by the management.

xi. According to the information and explanations given to us the provision of Section197 read with Schedule V of the Act is not applicable to the company and hence reportingunder clause 3(xi) of the Order is not applicable to the Company.

xii. The Company is not a Nidhi Company and hence reporting under clause 3(xii) of theOrder is not applicable.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Act where applicable for alltransactions with the related parties and the details of related party transactions havebeen disclosed in the financial statements as required by the applicable accountingstandards

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its Directors and hence provisions of Section 192 of theAct are not applicable.

xvi. According to the information and explanations given to us the company isregistered under section 45-IA of the Reserve Bank of India Act 1934 as Non-BankingFinancial Company.

Place: Chennai K NANDHISWARAN FCA
Date: 31st July 2020 Membership No: 207644

Annexure - B to the 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 M/s.Arihant's Securities Limited ("the Company") as of 31 March 2020 in conjunctionwith our audit of the financial statements of the Company for the year 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'). 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 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 financial reporting includes those policiesand 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 authorisations of management and directors of the company; and

3. Provide reasonable assurance regarding prevention or timely detection ofunauthorised 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 31 March 2020 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.

Place: Chennai K NANDHISWARAN FCA
Date: 31st July 2020 Membership No: 207644

To

The Board of Directors Arihant's Securities Limited

1. We have audited the accompanying financial statements of M/s. Arihant's SecuritiesLimited ("the Company") which comprise the Balance Sheet as at 31stMarch 2020 the Statement of Profit and Loss Cash Flow Statement for the year then endedand a summary of significant accounting policies and other explanatory information andissued our Audit opinion dated 31st July2020 thereon. These financialstatements are the responsibility of the Company's Management. Our responsibility is toexpress an opinion on these financial statements based on our audit. Our Audit wasconducted in the manner specified in paragraph 2 of the Audit Report.

2. As required by the "Non-Banking Financial Companies Auditor's Report (ReserveBank) Directions 2016" issued by the Reserve Bank of India ("the Bank" orRBI) and /amended from time to time ("the Directions") and based on our auditreferred to in paragraph 1 above and based on the information and explanations given to uswhich to the best of our knowledge and belief were necessary for this purpose we reporthereunder on the matters specified in paragraph 3 of the Directions:

a. The Company is engaged in the business of Non-Banking Financial Institution(‘NBFI') as defined in section 45-I(a) of the Reserve Bank of India Act 1934(‘the Act') during the year ended 31st March 2020 and it has obtainedCertificate of Registration No. : 07.00211 dated 1st April 1998 from ReserveBank of India;

b. Based on the asset/income pattern as on March 31 2020 determined by the Managementin accordance with the audited financial statements for the year ended as on that dateand with reference to paragraph 15 of the Non-Banking Financial (Non-Deposit Accepting orHolding) Companies Prudential Norms (Reserve Bank) Directions 2007 the Company isentitled to continue to hold such Certificate of Registration;

c. Based on the criteria set forth by the Bank in Circular No. DNBS.PD. CC No. 85 /03.02.089 /2006- 07 dated December 6 2006 for classification of NBFCs the Company hasbeen correctly classified as Investment Company as defined in Non-Banking FinancialCompanies Acceptance of Public Deposits (Reserve Bank) Directions 1998 with reference tothe business carried on by it during the financial year ended March 31 2020;

d. The Board of Directors in their meeting held on July 31 2020 has passed aresolution for nonacceptance of any public deposits without prior approval of Reserve Bankof India in writing;

e. The Company has not accepted any public deposits during the year ended March 312020;

f. The Company has complied with the prudential norms relating to income recognitionaccounting standards asset classification and provisioning for bad and doubtful debts asapplicable to it in terms of Non-Banking Financial (Non-Deposit Accepting or Holding)Companies Prudential Norms (Reserve Bank) Directions 2007 for the year ended March 312020;

Place: Chennai K NANDHISWARAN FCA
Date: 31st July 2020 Membership No: 207644