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Vikalp Securities Ltd.

BSE: 531334 Sector: Financials
NSE: N.A. ISIN Code: INE186E01011
BSE 00:00 | 25 Jun Vikalp Securities Ltd
NSE 05:30 | 01 Jan Vikalp Securities Ltd
OPEN 12.23
PREVIOUS CLOSE 12.23
VOLUME 1
52-Week high 12.90
52-Week low 11.07
P/E
Mkt Cap.(Rs cr) 4
Buy Price 11.65
Buy Qty 902.00
Sell Price 12.23
Sell Qty 34.00
OPEN 12.23
CLOSE 12.23
VOLUME 1
52-Week high 12.90
52-Week low 11.07
P/E
Mkt Cap.(Rs cr) 4
Buy Price 11.65
Buy Qty 902.00
Sell Price 12.23
Sell Qty 34.00

Vikalp Securities Ltd. (VIKALPSECUR) - Auditors Report

Company auditors report

TO THE MEMBERS OF

VIKALP SECURITIES LIMITED. KANPUR.

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of VIKALP SECURITIES LIMITED("the Company") which comprise the Balance Sheet as at March 31 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary 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 stated in Section134(5) of the Companies Act2013 with respect to preparation of these financial statementsthat give a true and fair view of the financial position financial performance and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Accounting Standards specified under Section 133 of the Act readwith Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forthe ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

Auditor's 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) the Act. Those Standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlsrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of 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 auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the financial statements.

Opinion

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 the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of Company as at 31stMarch 2016 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(Auditor's Report)Order2016('the Order')issued by theCentral Government of India in terms of sub section (11) of Section 143 of the Act wegive in the Annexure A a statement on the matters specified in the paragraphs 3 and 4 ofthe 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 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 on31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31stMarch 2016 from being appointed as a director in terms of Section164(2) of the Act.

(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 beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 in our opinion and to the best of our information and according tothe explanations given to us: i. The Company does not have any pending litigations whichwould impact its financial position.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company

For Chaudhary Pandiya & co.
Chartered Accountants
FRN 001903C
Place: Kanpur
Dated: 30-05-2016
(Ganesh Chaudhary)
Partner
M.No. 070838

ANNEXURE 'A' TO THE AUDITORS' REPORT

The annexure referred to in Independent Auditors Report to the members of the Companyon the financial statements for the year ended 31st March 2016.we report that;

(i) (a) The Company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets;

(b) As explained to us the fixed assets of the Company have been physically verifiedby the management at reasonable intervals during the year; No material discrepancies werenoticed on such verification;

(c) According to the information and explanation given to us and on the basis of theexamination of the records of the Company there is no immovable property in the Company;therefore paragraph 3(i)(c) of the Order is not applicable to the Company.

(ii) As per the information and explanation given to us the management hasconducted physical verification of inventory at reasonable intervals during the year ofunquoted & non dematerialised securities and no material discrepancies were noticed onsuch verification.

(iii) According to the information and explanation given to us and on the basis ofthe examination of the records of the Company The company has not granted any secured orunsecured loans to any companies firms limited liability partnership or other partiescovered in the register maintained under section 189 of the Companies Act 2013.Accordingly paragraph 3(iii) is not applicable to the Company.

(iv) According to the information and explanation given to us and on the basis ofthe examination of the records of the Company The company has not granted any loans toany of its directors thus the provisions of section 185 of the Companies Act 2013 is notapplicable.

But the Company has granted long term and short term unsecured loans to corporatesfirms and individuals invested in shares and securities of listed companies and as wellas in unquoted equity shares amounting to Rs.41391080.53 Rs.276346.36 and Rs.5145100.00respectively thus the total of such loans and investment is Rs.46812526.89 which is inexcess of sixty percent of the share capital and free reserves by Rs.26774356.00 as perthe provisions of sub section 2 of section 186 of Companies Act 2013. Further in thisregard the Company has not taken approval from the members of the company by way ofspecial resolution.

(v) According to the information and explanation given to us and on the basis ofthe examination of the records of the Company; The Company has not accepted any depositsfrom public. Therefore paragraph 3(v) of the order is not applicable.

(vi) The Company is not required to maintain any cost records that have beenspecified by the Central Government under subsection (1) of section 148 of the CompaniesAct 2013. Therefore paragraph 3(vi) of the order is not applicable.

(vii) (a) According to the information and explanation given to us and on the basisof our examination of the records of the Company the Company has been regular indepositing its undisputed statutory dues including income tax cess and other materialstatutory dues with the appropriate authority. As explained to us no undisputed amountspayable in respect of income tax cess were in arrears as at 31st march2016 for a periodof more than 6 months from the date they became payable.

(b) According to the information and explanation given to us there are no material dueson account of income tax cess that has not been deposited with the appropriate authorityon account of any dispute.

(viii) According to the information and explanation given to us and on the basis ofour examination of records of the Company the Company does not have any loans orborrowing from any financial institutions bank Government or dues to debenture holdersduring the year.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year. Thereforeparagraph 3(ix) of the order is not applicable

(x) To the best of our knowledge and belief and according to the information andexplanation given to us no material fraud on or by the company by its officers oremployees has been noticed or reported during the course of our audit.

(xi) According to the information and explanation given to us and on the basis ofour examination the Company has paid/ provided for managerial remuneration in accordancewith the requisite approvals mandated by the provisions of section 197 read with ScheduleV of the Companies Act.

(xii) In our opinion and according to the information and explanation given to usthe company is not a nidhi company. Therefore paragraph 3(xii) of the order is notapplicable.

(xiii) According to the information and explanation given to us and on the basis ofour examination of the records of the company transactions with the related party are incompliance with sections 177 & 188 of the act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) According to the information and explanation given to us and on the basis ofour examination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Therefore paragraph 3(xiv) of the order is not applicable

(xv) According to the information and explanation given to us and on the basis ofour examination of the records of the Company the Company has not entered into anynon-cash transactions with the directors or persons connected with him. Thereforeparagraph 3(xv) of the order is not applicable

(xvi) (a) The Company is required to obtain registration under section 45-IA of theReserve Bank Of India Act 1934 but has failed to apply for the same.

(b) The company had surrendered its stock broking membership with SEBI in November 2012and decided to engage in investment and trading activities of shares and securities butdue to market conditions it could not do so and deployed its idle funds in giving loansbut failed to apply for registration as NBFC with Reserve Bank Of India under section45-IA

For Chaudhary Pandiya & co.
Chartered Accountants
FRN 001903C
Place: Kanpur
Dated: 30-05-2016
(Ganesh Chaudhary)
Partner
M.No. 070838

ANNEXURE - B TO THE AUDITORS' REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of Independent Auditor's Report on financial statement of even date.)

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 VIKALPSECURITIES LIMITED ("the Company") as of 31 March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.

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 responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 judgement 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 accuratelyand fairly reflect the transactions and dispositions of the assets of the company;

(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 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 2016 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 for our audit opinion on the Company's internal financial controlssystem over financial reporting.

For Chaudhary Pandiya & co.
Chartered Accountants
FRN 001903C
Place: Kanpur
Dated: 30-05-2016
(Ganesh Chaudhary)
Partner
M.No. 070838