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Arihants Securities Ltd.

BSE: 531017 Sector: Financials
NSE: N.A. ISIN Code: INE190D01015
BSE 00:00 | 11 Aug 12.67 0.60
(4.97%)
OPEN

12.06

HIGH

12.67

LOW

12.06

NSE 05:30 | 01 Jan Arihants Securities Ltd
OPEN 12.06
PREVIOUS CLOSE 12.07
VOLUME 384
52-Week high 16.70
52-Week low 6.82
P/E 5.53
Mkt Cap.(Rs cr) 6
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 12.06
CLOSE 12.07
VOLUME 384
52-Week high 16.70
52-Week low 6.82
P/E 5.53
Mkt Cap.(Rs cr) 6
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

TO THE SHAREHOLDERS OF ARIHANT'S SECURITIES LIMITED

We have audited the accompanying financial statements of M/s. Arihant's SecuritiesLimited ("the Company") which comprise the Balance Sheet as at 31st March 2021the Statement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year ended on that date and asummary of significant accounting policies and other explanatory information

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Financial Statements give the information required by theCompanies Act 2013 (the "Act") in the manner so required and give a true andfair view in conformity with the Indian Accounting Standards prescribed under section 133of the Act read with the Companies (Indian Accounting Standards) Rules

2015 as amended ("Ind AS") and other accounting principles generallyaccepted in India of the state of affairs of the Company as at March 31 2021 and itsprofit total comprehensive income changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing ("SA"s) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof

Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's

Code of Ethics. We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the financial statements.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income changes in equity and cash flows of the Company in accordance withthe Ind AS and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding 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.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess

Auditors' Responsibility

Our responsibility is to express an opinion on these nancial 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 speci ed 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 nancial 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 IND AS::

i. in the case of the Balance Sheet of the state of affairs of the Company as at 31stMarch 2021; ii. in the case of the Statement of Profit and Loss of the Loss for the yearended on that date; and iii. in the case of the Cash Flow Statement of the cash flows forthe year ended on that 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 of the Act we give inthe Annexure A a statement on the matters specified in paragraphs 3 and 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books. c. The Balance Sheet Statement ofProfit and Loss and Cash Flow Statement dealt with by this report are in agreement withthe books of account. d. In our opinion the aforesaid nancial statements comply with theAccounting Standards speci ed under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e. On the basis of written representations received fromthe directors as on 31 March 2021 taken on record by the Board of Directors none of thedirectors is disquali ed as on 31 March 2021 from being appointed as a director in termsof Section 164(2) of the Act. f. With respect to the adequacy of the Internal FinancialControls over Financial Reporting of the company and the operating effectiveness of suchcontrols refer to our separate report in

"Annexure B" and g. With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of section 197(16) of the Act asamended:

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 othermatters included in the Auditor's Report in accordance with Rule 11 of the Companies(Audit and Auditor's) Rules2014 and to the best of our information and according to theexplanations given to us: i. The Company does not have any pending litigations which wouldimpact its nancial position ii. The Company did not have any long-term contracts includingderivatives contracts for which there were any material foreseeable losses. iii. There hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and Protection Fund by the Company

Place: Chennai K NANDHISWARAN FCA
Date: 30 June 2021 Membership No: 207644
UDIN:21207644AAAAIK8429

ANNEXURE A TO INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 7 of our report of even date under the caption "Reporton 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 2021. 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 2021 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 informationand explanations given to us the provision of Section 197 read with Schedule V of the Actis not applicable to the company and hence reporting under clause 3(xi) of the Order isnot 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: 30 June 2021 Membership No: 207644
UDIN:21207644AAAAIK8429

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 2021 inconjunction with our audit of the financial statements of the Company for the year endedon 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').

These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information 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 deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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: 30 June 2021 Membership No: 207644
UDIN:21207644AAAAIK8429

To

The Board of Directors

Arihant's Securities Limited

1. We have audited the accompanying financial statements of M/s. Arihant'sSecurities Limited ("the Company") which comprise the Balance Sheet as at31st March 2021 the Statement of Profit and Loss Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation and issued our Audit opinion dated 30th June 2021 thereon. Thesefinancial statements are the responsibility of the Company's Management. Ourresponsibility is to express an opinion on these financial statements based on our audit.Our Audit was conducted 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 2021 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 2021 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 has beencorrectly classified as Investment Company as defined in Non-Banking Financial CompaniesAcceptance of Public Deposits (Reserve Bank) Directions 1998 with reference to thebusiness carried on by it during the financial year ended March 31 2021;

d. The Board of Directors in their meeting held on July 31 2021 has passed aresolution for non- acceptance of any public deposits without prior approval of ReserveBank of India in writing;

e. The Company has not accepted any public deposits during the year ended March 312021;

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 312021;

Place: Chennai K NANDHISWARAN FCA
Date: 30 June 2021 Membership No: 207644
UDIN:21207644AAAAIK8429

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