Auditor Report of Arihant Capital Markets Ltd.
Mar 31, 2019
Report on the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of ARIHANT CAPITAL MARKETS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31â March, 2019, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2019, and its profit and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those Standards are further described in the Auditorâs Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined that there is no key audit matter to communicate in our report.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
That Board of Directors is also responsible for overseeing the Companyâs financial reporting process.
Auditorâs Responsibility
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is included inAnnexure âAâ of this auditorâs report. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe orderâ) issued by the Central Government of India in terms of sub-section (11) 143 of the act, we give in the Annexure âBâ, a statement on the matters specified in the paragraph 3 and 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 best of 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 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 Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the accounting standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31â March, 2019 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2019 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial control over financial reporting of the company and the operating effectiveness of such control, refer to our separate report in Annexure â âCâ; and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its financial statements as referred to in Note 28 to the Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE âAâ REFERRED TO IN PARAGRAPH UNDER THE HEADING OF âAUDITORâS RESPONSIBILITYâ OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2019
As part of audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
1. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
4. Conclude on the appropriateness of managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern.
5. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Materiality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Financial Statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (11) to evaluate the effect of any identified misstatements in the Financial Statements.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters.We describe these matters in our auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
ANNEXURE ââBâ REFERRED TO IN PARAGRAPH I UNDER THE HEADING OF âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ONTHE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2019
1. a) The Company has maintained proper records to show full particulars, including quantitative details and situation of its fixed assets.
b) All fixed assets of the Company are physically verified by the management at regular intervals, which in our opinion, is reasonable considering the size of the Company and the nature of assets. During the year, as informed to us by management, no material discrepancies have been noticed on such verification.
c) The title deeds of immovable properties are held in the name of the Company.
2. The securities held as stock in trade have been verified by the Management with the statement of holdings provided by depository participants and brokers at reasonable intervals. In our opinion, the frequency of verification is reasonable and no material discrepancies between the book records and the statement of holdings provided by NSDL, other depository participants and brokers have been noticed.
3. The Company has granted unsecured loan to two companies covered in the register maintained under section 189 of The Companies Act, 2013.
(a) The rate of interest and other terms and conditions on which the loan had been granted to the body corporate listed in the register maintained under section 189 of the Act are not prejudicial to the interest of the company.
(b) There are no stipulations for the repayment schedule however the rate of interest is stipulated for the loan granted to the body corporate listed in the register maintained under section 189 of the Act.The borrower has been regular in the payment of principal and interest wherever stipulated.
(c) As per records of the Company and according to the information and explanation given to us, no amount of principal and interest is overdue.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investment, guarantees and security.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public.
6. We are informed that maintenance of cost records has not been prescribed by the Central Government under section 148 of The Companies Act, 2013, in respect of the activities carried on by the Company.
7. a) As per the records of the Company, the company is regular in depositing the statutory dues including provident fund, income tax, goods and service tax, cess and other material statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, no undisputed amount in respect of income tax, goods and service tax, custom duty, excise duty, cess applicable to it is outstanding as at the last day of the financial year concerned for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues of income tax, goods and service tax, custom duty, excise duty, cess which have not been deposited on account of any dispute.
8. The Company has not defaulted in payments of any dues to financial institutions, banks or debenture holders. The Company did not have any dues to debenture holder during the year.
9. According to the information and explanation given to us and the record examined by us, the Company has not raised any money by way of initial public offer or further public offer. Hence, clause 3(ix) of the order is not applicable.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no material fraud on or by the Company has been noticed or reported during the period covered by our audit.
11. According to the information and explanation given to us and the record examined by us, the Company has provided managerial remuneration during the year in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
12. The Company is not Nidhi Company. Hence, clause 3(xii) of the order is not applicable.
13. According to the information and explanation given to us and the record examined by us, all the transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in financial statements etc., as required by the applicable accounting standards.
14. According to the information and explanation given to us and the record examined by us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanation given to us, the Company has not entered into any non cash transactions with directors or persons connected with him.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE âCâ AS REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING OF âREPORT ON LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ONTHE ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2019
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Arihant Capital Market Limited (âthe Companyâ) as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles A companyâs internal financial control over financial reporting includes those policies and procedures that
1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
3. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Dinesh Ajmera & Associates
Chartered Accountants
Firm Reg. No:011970C
CA Dinesh Ajmera
Partner
Membership No. : 402629
Indore, May 21, 2019
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ARIHANT CAPITAL MARKETS LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 3Iâ March, 20I8, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section I34(5) of the Companies Act, 20I3 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section I33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 20I4.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section I43(I0) of the Act.Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements.The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 3Ist March, 20I8, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
I. As required by the Companies (Auditorâs Report) Order, 20I6 (âthe orderâ) issued by the Central Government of India in terms of sub-section (II) I43 of the act, we give in the Annexure âAâ, a statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by Section I43 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of 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 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 Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the accounting standards specified under Section I33 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 20I4
(e) On the basis of the written representations received from the directors as on 3Iâ March, 20I8 taken on record by the Board of Directors, none of the directors is disqualified as on 3Ist March, 20I8 from being appointed as a director in terms of Section I64 (2) of the Act.
(f) With respect to the adequacy of the internal financial control over financial reporting of the company and the operating effectiveness of such control, refer to our separate report in Annexure âBâ; and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule II of the Companies (Audit and Auditors) Rules, 20I4, in our opinion and 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 financial position in its financial statements as referred to in Note 28 to the Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts; as such 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, to the Investor Education and Protection Fund by the Company.
ANNEXURE âAâ REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF âREPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2018
1. a) The Company has maintained proper records to show full particulars, including quantitative details and situation of its fixed assets.
b) All fixed assets of the Company are physically verified by the management at regular intervals, which in our opinion, is reasonable considering the size of the Company and the nature of assets. During the year, as informed to us by management, no material discrepancies have been noticed on such verification.
c) The title deeds of immovable properties are held in the name of the Company.
2. The securities held as stock in trade have been verified by the Management with the statement of holdings provided by depository participants and brokers at reasonable intervals. In our opinion, the frequency of verification is reasonable and no material discrepancies between the book records and the statement of holdings provided by NSDL, other depository participants and brokers have been noticed.
3. The Company has granted unsecured loan to one company covered in the register maintained under section I89 of The Companies Act, 20I3.
(a) The rate of interest and other terms and conditions on which the loan had been granted to the body corporate listed in the register maintained under section I89 of the Act are not prejudicial to the interest of the company.
(b) There are no stipulations for the repayment schedule however the rate of interest is stipulated for the loan granted to the body corporate listed in the register maintained under section I89 of the Act. The borrower is regular in the payment of principal and interest wherever stipulated.
(c) As per records of the Company and according to the information and explanation given to us, no amount of principal and interest is overdue.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section I85 and I86 of the Companies Act, 20I3 in respect of loans, investment, guarantees and security.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public.
6. We are informed that maintenance of cost records has not been prescribed by the Central Government under section I48 of The Companies Act, 20I3, in respect of the activities carried on by the Company
7. a) As per the records of the Company, the company is regular in depositing the statutory dues including provident fund, income tax, service tax, cess and other material statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, no undisputed amount in respect of income tax, sales tax, service tax, custom duty, excise duty, cess applicable to it is outstanding as at the last day of the financial year concerned for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, custom duty, excise duty, cess which have not been deposited on account of any dispute.
8. The Company has not defaulted in payments of any dues to financial institutions, banks or debenture holders. The Company did not have any dues to financial institutions or debenture holder during the year.
9. According to the information and explanation given to us and the record examined by us, the Company has not raised any money by way of initial public offer or further public offer. Hence, clause 3(ix) of the order is not applicable.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no material fraud on or by the Company has been noticed or reported during the period covered by our audit.
11. According to the information and explanation given to us and the record examined by us, the Company has provided managerial remuneration during the year in accordance with the requisite approvals mandated by the provisions of section I97 read with ScheduleV to the Companies Act.
12. The Company is not Nidhi Company. Hence, clause 3(xii) of the order is not applicable.
13. According to the information and explanation given to us and the record examined by us, all the transactions with the related parties are in compliance with sections I77 and I88 of Companies Act, 20I3 where applicable and the details have been disclosed in financial statements etc., as required by the applicable accounting standards.
14. According to the information and explanation given to us and the record examined by us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanation given to us, the Company has not entered into any non cash transactions with directors or persons connected with him.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, I934.
ANNEXURE âBâ AS REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING OF âREPORT ON LEGAL AND REGULATORY REQUIREMENTSâ OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Arihant Capital Market Limited (âthe Companyâ) as of March 3I, 20I8 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 20I3.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section I43(I0) of the Companies Act, 20I3, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principlesA companyâs internal financial control over financial reporting includes those policies and procedures that
1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
3. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 3I, 20I8, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Dinesh Ajmera & Associates
Chartered Accountants
Firm Reg. No:011970C
CA Dinesh Ajmera
Partner
Membership No. : 402629
Indore, May 28, 2018
Mar 31, 2016
To
The Members,
Arihant Capital Markets Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ARIHANT CAPITAL MARKETS LIMITED ("the Company"), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 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) 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 matters specified in the paragraph 3 and 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 best of 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 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 Cash Flow Statement dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the directors as on 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial control over financial reporting of the company and the operating effectiveness of such control, refer to our separate report in Annexure "B"; and
(g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and 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 financial position in its financial statements as referred to in Note 27 to the Financial Statements.
ii. The Company has made provision as required under the applicable law or accounting standards for material foreseeable losses, if any, on long-term contracts including derivative contracts as referred to in Note 7 & Note 8 to the financial statements.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE "A" REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING OF "REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2016
1. a) The Company has maintained proper records to show full particulars, including quantitative details and situation of its fixed assets.
b) All fixed assets of the Company are physically verified by the management at regular intervals, which in our opinion, is reasonable considering the size of the Company and the nature of assets. During the year, as informed to us by management, no material discrepancies have been noticed on such verification.
c) The title deeds of immovable properties are held in the name of the Company.
2. The securities held as stock in trade have been verified by the Management with the statement of holdings provided by depository participants and brokers at reasonable intervals. In our opinion, the frequency of verification is reasonable and no material discrepancies between the book records and the statement of holdings provided by NSDL, other depository participants and brokers have been noticed.
3. The Company has granted unsecured loan to one company covered in the register maintained under section 189 of The Companies Act, 2013.
(a) There are no stipulations as to schedule of repayment of principal and payment of interest. The rate of interest is stipulated and paid accordingly.
(b) In case of loan granted to the body corporate listed in the register maintained under section 189 of the Act, the borrower has been regular in the payment of principal and interest as stipulated.
(c) As per records of the Company and according to the information and explanation given to us, no amount of principal and interest is overdue.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of loans, investment, guarantees and security.
5. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from public.
6. We are informed that maintenance of cost records has not been prescribed by the Central Government under section 148 of The Companies Act, 2013, in respect of the activities carried on by the Company.
7. a) As per the records of the Company, the company is regular in depositing the statutory dues including provident fund, income tax, service tax, cess and other material statutory dues applicable to it with the appropriate authorities. According to the information and explanations given to us, no undisputed amount in respect of income tax, sales tax, service tax, custom duty, excise duty, cess applicable to it is outstanding as at the last day of the financial year concerned for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, custom duty, excise duty, cess which have not been deposited on account of any dispute.
|
Name of the Statute |
Nature of Dues |
Financial Year |
Amount (Rs.) |
Forum where dispute is pending |
|
Income Tax Act, 1961 |
Income Tax |
2012-13 |
2497800 |
Commissioner of Appeals |
8. The Company has not defaulted in payments of any dues to financial institutions, banks or debenture holders. The Company did not have any dues to financial institutions or debenture holder during the year.
9. According to the information and explanation given to us and the record examined by us, the Company has not raised any money by way of initial public offer or further public offer. Hence, clause 3(ix) of the order is not applicable.
10. Based upon the audit procedures performed and information and explanations given by the management, we report that no material fraud on or by the Company has been noticed or reported during the period covered by our audit.
11. According to the information and explanation given to us and the record examined by us, the Company has provided managerial remuneration during the year in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act.
12. The Company is not Nidhi Company. Hence, clause 3(xii) of the order is not applicable.
13. According to the information and explanation given to us and the record examined by us, all the transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in financial statements etc., as required by the applicable accounting standards.
14. According to the information and explanation given to us and the record examined by us, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanation given to us, the Company has not entered into any non cash transactions with directors or persons connected with him.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE "B" AS REFERRED TO IN PARAGRAPH 2(f) UNDER THE HEADING OF "REPORT ON LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE TO THE MEMBERS OF ARIHANT CAPITAL MARKETS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 31st MARCH 2016
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of Arihant Capital Market Limited ("the Company") as of March 31, 2016 in conjunction with our audit of the standalone 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 internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with 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 section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that
1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
3. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For Arora Banthia & Tulsiyan
Chartered Accountants
Firm No :007028C
CA Ajay Tulsiyan
Partner
Membership No. : 74868
Indore, May 24th, 2016
Mar 31, 2015
We have audited the accompanying standalone financial statements of
ARIHANT CAPITAL MARKETS LIMITED ("the Company"), which comprise the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended, and a summary of the
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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these financial statements that give a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st 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 (Auditor's Report) Order, 2015 ("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 statement on the
matters specified in the paragraph 3 and 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 best of 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 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 Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements as referred to in Note
27 to the Financial Statements.
ii. The Company did not have any long-term contracts including
derivative contracts; as such 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, to the Investor Education and Protection Fund by the
Company.
Annexure referred to in paragraph 1 under the heading of "report on
other legal and regulatory requirements" of our report of even date
to the members of Arihant Capital Markets Limited on the accounts for
the year ended 31st March 2015
1. a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of its fixed
assets.
b) All fixed assets have not been physically verified by the management
during the year but there is a verification programme to ensure that
all assets are verified at least once in every three years which, in
our opinion, is reasonable having regard to the size of the company and
the nature of its assets. The discrepancies noticed on verification
were not material 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 with the statement of holdings provided by depository
participants and brokers at reasonable intervals. In our opinion, the
frequency of verification is reasonable.
b) In our opinion, the procedures of confirmation of securities held as
stock in trade followed by the Management are reasonable and adequate
in relation to the size of the Company and the nature of its business.
c) On the basis of our examination of the records of the Company
relating to securities held as stock in trade, in our opinion, the
Company has maintained proper records of stock in trade and no material
discrepancies between the book records and the statement of holdings
provided by NSDL, other depository participants and brokers have been
noticed.
3. The Company has granted unsecured loan to two companies covered in
the register maintained under section 189 of The Companies Act, 2013.
(a) The receipt of principal amounts and interest if any in respect of
such loans during the year has been regular/ as per stipulation.
(b) As per records of the company and according to the information and
explanations given to us, no amount of principal and interest is
overdue.
4. In our opinion and according to the information and explanations
given to us the Company has an adequate internal control procedure
commensurate with the size and nature of its business, with regard to
the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits from the public.
6. We are informed that maintenance of cost records has not been
prescribed by the Central Government under section 148 of the Companies
Act, 2013 in respect of the activities carried by the company.
7. a) As per the records of the Company, the Company is generally
regular in depositing the statutory dues including provident fund,
income tax, wealth tax, service tax, cess and other material statutory
dues applicable to it with the appropriate authorities. According to
the information and explanations given to us, no undisputed amount in
respect of income tax, sales tax, service tax, custom duty, wealth tax,
excise duty, cess applicable to it is outstanding as at the last day of
the financial year concerned for a period of more than six months from
the date they became payable.
b) According to the information and explanations given to us and on the
basis of examination of records of the Company provident fund, sales
tax, income tax, wealth tax, cess which have not been deposited on
account of dispute are given below:
Name of the Statute Nature of Dues Financial Year Amount(Rs)
Income Tax Act, 1961 Income Tax 2010-2011 550703
Name of the Statue Forum where dispute is pending
Income Tax Act, 1961 Commissioner of Appeals
c) According to the information and explanations given to us and on the
basis of examination of records of the Company, the amount required to
be transferred to investor education and protection fund in accordance
with the relevant provisions of the Companies Act, 1956 (1 of 1956) and
rules made there under has been transferred to such fund within time.
8. The Company has no accumulated losses as at 31st March, 2015 and
has not incurred cash loss in the current financial year and the
immediately preceding financial year.
9. The Company has not defaulted in payments of any dues to financial
institutions, banks or debenture holders.
10. In our opinion and according to the information and explanations
given to us, the terms & conditions on which the Company has given
guarantees for loan taken by other party from bank or financial
institution are not prejudicial to the interest of the Company.
11. According to the information and explanations given to us and the
record examined by us, the Company has not taken any term loans.
12. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the period covered by
our audit.
For Arora Banthia & Tulsiyan
Chartered Accountants
Firm No:007028C
CA Ajay Tulsiyan
Partner
Membership No. : 74868
Indore, 29th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Arihant
Capital Markets Limited (the "Company"), which comprise the Balance
Sheet as at March 31, 2014, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards notified under the Companies
Act, 1956 ("the Act") read with the General Circular 15/2013 date 13th
September, 2013 of the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act,2013 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence, about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditors
consider internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by Management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. Opinion
In our opinion, and to the best of our information and according to the
explanations given to us, the accompanying financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the 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) Order, 2003, as
amended by the Companies (Auditor''s Report) (Amendment) Order, 2004,
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Act (hereinafter referred to as the "Order"),
and on the basis of such checks of the books and records of the
Company as we considered appropriate and according to the information
and explanations given to us, we give in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards notified under
the Companies Act, 1956 ("the Act") read with the General Circular
15/2013 date 13th September,2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act,2013;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
Annexure referred to in paragraph 1 under the heading of "report on
other legal and regulatory requirements" of our report of even date
to the members of Arihant Capital Markets Limited on the accounts for
the period ended 31st March, 2014
1. (a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of its
fixed assets.
(b) The fixed assets of the Company are physically verified by the
management at regular intervals, which in our opinion, is reasonable
considering the size of the Company and the nature of assets. During
the year, as informed to us by management, no material discrepancies
have been noticed on such verification.
(c) In our opinion, substantial parts of the Company''s fixed assets
have not been disposed off by the Company, during the year.
2. (a) The securities held as stock in trade have been verified by the
Management with the statement of holdings provided by
depository participants and brokers at reasonable intervals. In our
opinion, the frequency of verification is reasonable.
(b) In our opinion, the procedures of confirmation of securities held
as stock in trade followed by the Management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
(c) On the basis of our examination of the records of the Company
relating to securities held as stock in trade, in our opinion, the
Company has maintained proper records of stock in trade and no material
discrepancies between the book records and the statement of holdings
provided by NSDL, other depository participants and brokers have been
noticed.
3. a) The Company has granted unsecured loan to two company covered in
the register maintained under section 301 of The Companies Act, 1956.
The maximum amount involved was Rs.7,49,09,200/- and the closing balance is Rs.2,02,09,200/-.
b) In our opinion the rate of interest and other term and conditions of
loan given by the company are not prima facie prejudicial to the
interest of the Company.
c) The payments of principal amounts and interest in respect of such
loans during the year has been regular/ as per stipulation.
d) The Company had outstanding unsecured loan taken from one company
covered in the register maintained under section 301 of The Companies
Act, 1956. The maximum amount involved was Rs.1,04,95,000/- and the
closing balance was Rs.Nil.
e) In our opinion the rate of interest and other term and conditions of
loan taken by the company are not prima facie prejudicial to the
interest of the Company.
f) The payments of principal amounts and interest in respect of such
loans during the year has been regular/ as per stipulation.
4. In our opinion and according to the information and explanations
given to us the Company has an adequate internal control procedure
commensurate with the size and nature of its business, with regard to
the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the
transactions that need to be entered in the register maintained under
section 301 of The Companies Act, 1956, have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of
contracts and arrangements referred in (5)(a) above and exceeding the
value of '' Five Lacs with any party during the year have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
as governed by the provision of section 58A and 58AA or any other
relevant provisions of the Act and rules framed their under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that maintenance of cost records has not been
prescribed by the Central Government under section 209 (1) (d) of The
Companies Act, 1956, in respect of the activities carried on by the
Company.
9. a) As per the records of the Company, the company is generally
regular in depositing the statutory dues including provident fund,
income tax, wealth tax, service tax, cess and other material
statutory dues applicable to it with the appropriate authorities
b) According to the information and explanations given to us, no
undisputed amount in respect of income tax, sales tax, service tax,
custom duty, wealth tax, excise duty, cess applicable to it is
outstanding as at the last day of the financial year concerned for a
period of more than six months from the date they became payable.
c) According to the information and explanations given to us and on the
basis of examination of records of the Company provident fund, sales
tax, income tax, wealth tax, cess which have not been deposited on
account of dispute are given
Name of the Nature of Financial Year Amount Forum where dispute
Statue Dues is pending
Income Tax Income Tax 2010-2011 550703 Commissioner
Act 1961 of Appeals
10. The Company has no accumulated losses at the end of financial year
and has not incurred cash losses in the current financial year and the
immediately preceding financial year.
11. The Company has not defaulted in payments of any dues to financial
institutions, banks or debenture holders.
12. In our opinion the Company has maintained adequate documents and
records where it has granted loans and advances on the basis of
security of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore the provisions of clause 4 (xiii) of the Order
are not applicable to the Company.
14. The Company is dealing in securities for which proper records have
been maintained of the transactions and timely entries have been made
therein. Securities held by the Company are held in the name of the
Company or in the name of its nominees except to the extent of the
exemption granted under Section 49 of the Act.
15. In our opinion and according to the information and explanations
given to us, the terms & conditions on which the Company has given
guarantees for loan taken by other party from bank or financial
institution are not prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
record examined by us, the Company has not taken any term loans.
17. According to the information and explanation given to us and on an
overall examination of Balance Sheet of the Company and the Cash Flow
Statement, in our opinion funds raised on short-term basis have not
been used for long-term investment.
18. The Company has not made preferential allotment of shares to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the period covered by
our audit.
For Arora Banthia & Tulsiyan
Chartered Accountants
Firm No:007028C
CA Ajay Tulsiyan
Partner
Membership No. : 74868
Indore, 24th May, 2014
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Arihant
Capital Markets Limited (the "Company"), which comprise the Balance
Sheet as at March 31, 2013, the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information, which we have
signed under reference to this report.
Management''s Responsibility for the Financial Statements
The Company''s Management is responsible for the preparation of these
financial statements that give a true and fair view of the financial
position, financial performance and cash flows of the Company in
accordance with the Accounting Standards referred to in sub-section
(3C) of Section 211 of ''the Companies Act, 1956'' of India (the "Act").
This responsibility includes the design, implementation and maintenance
of internal control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditors'' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement. An audit involves performing procedures to
obtain audit evidence, about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors''
judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditors consider internal
control relevant to the Company''s preparation and fair presentation of
the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Management, as well as evaluating the
overall presentation of the financial statements. We believe that the
audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion, and to the best of our information and according to the
explanations given to us, the accompanying financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the 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) Order, 2003'', as
amended by ''the Companies (Auditor''s Report) (Amendment) Order, 2004'',
issued by the Central Government of India in terms of sub-section (4A)
of Section 227 of the Act (hereinafter referred to as the "Order"), and
on the basis of such checks of the books and records of the Company as
we considered appropriate and according to the information and
explanations given to us, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
Accounting Standards referred to in sub-section (3C) of Section 211 of
the Act;
e) On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
Annexure Referred to In Paragraph 1 Under The Heading of "report on
other Legal and Regulatory Requirements" of Our Report of Even Date to
The Members of Arihant Capital Markets Limited on the Accounts for the
Period Ended 31st March, 2013
1. a. The Company has maintained proper records to show full
particulars, including quantitative details and situation of its fixed
assets.
b. The fixed assets of the Company are physically verified by the
management at regular intervals, which in our opinion, is reasonable
considering the size of the Company and the nature of assets. During
the year, as informed to us by management, no material discrepancies
have been noticed on such verification
c. In our opinion, substantial parts of the Company''s fixed assets
have not been disposed off by the Company, during the year.
2. a. The securities held as stock in trade have been verified by the
Management with the statement of holdings
provided by depository participants and brokers at reasonable
intervals. In our opinion, the frequency of verification is reasonable.
b. In our opinion, the procedures of confirmation of securities held
as stock in trade followed by the Management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
c. On the basis of our examination of the records of the Company
relating to securities held as stock in trade, in our opinion, the
Company has maintained proper records of stock in trade and no material
discrepancies between the book records and the statement of holdings
provided by NSDL, other depository participants and brokers have been
noticed.
3. a. The Company has granted unsecured loan to one company covered in
the register maintained under section 301 of The Companies Act, 1956.
The maximum amount involved was Rs.968.00 Lacs and the closing balance is
Rs. Nil.
b In our opinion the rate of interest and other term and conditions of
loan given by the company are not prima facie prejudicial to the
interest of the Company.
c. The payments of principal amounts and interest in respect of such
loans during the year has been regular/ as per stipulation.
d. The Company had outstanding unsecured loan taken from one company
covered in the register maintained under section 301 of The Companies
Act, 1956. The maximum amount involved was Rs.1558.99 Lacs and the
closing balance was Rs. Nil.
e. In our opinion the rate of interest and other term and conditions
of loan taken by the company are not prima facie prejudicial to the
interest of the Company.
f. The payments of principal amounts and interest in respect of such
loans during the year has been regular/ as per stipulation.
4. In our opinion and according to the information and explanations
given to us the Company has an adequate internal control procedure
commensurate with the size and nature of its business, with regard to
the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. a. In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
be entered in the register maintained under section 301 of The
Companies Act, 1956, have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred in (5)(a) above and exceeding the value of Rs. Five
Lacs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
as governed by the provision of section 58A and 58AA or any other
relevant provisions of the Act and rules framed their under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that maintenance of cost records has not been
prescribed by the Central Government under section 209 (1) (d) of The
Companies Act, 1956, in respect of the activities carried on by the
Company.
9. a. As per the records of the Company, the company is generally
regular in depositing the statutory dues including provident fund,
income tax, wealth tax, service tax, cess and other material statutory
dues applicable to it with the appropriate authorities
b. According to the information and explanations given to us, no
undisputed amount in respect of income tax, sales tax, service tax,
custom duty, wealth tax, excise duty, cess applicable to it is
outstanding as at the last day of the financial year concerned for a
period of more than six months from the date they became payable.
c. According to the information and explanations given to us and on
the basis of examination of records of the Company provident fund,
sales tax, income tax, wealth tax, cess which have not been deposited
on account of dispute are given below:
Name of the Nature of Amount Forum where dispute
Statue Dues Year (Rs. in Lacs) is pending
Income Tax Income Tax 2010-2011 10.64 Commissioner of
Appeals
Act, 196 1
10. The Company has no accumulated losses at the end of financial year
and has not incurred cash losses in the current financial year and the
immediately preceding financial year. 11. The Company has not
defaulted in payments of any dues to financial institutions, banks or
debenture holders.
12. In our opinion the Company has maintained adequate documents and
records where it has granted loans and advances on the basis of
security of pledge of shares, debentures and other securities.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore the provisions of clause 4 (xiii) of the Order
are not applicable to the Company.
14. The Company is dealing in securities for which proper records have
been maintained of the transactions and timely entries have been made
therein. Securities held by the Company are held in the name of the
Company or in the name of its nominees except to the extent of the
exemption granted under Section 49 of the Act.
15. In our opinion and according to the information and explanations
given to us, the terms & conditions on which the Company has given
guarantees for loan taken by other party from bank or financial
institution are not prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
record examined by us, the Company has not taken any term loans.
17. According to the information and explanation given to us and on an
overall examination of Balance Sheet of the Company and the Cash Flow
Statement, in our opinion funds raised on short-term basis have not
been used for long-term investment.
18. The Company has not made preferential allotment of shares to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the period covered by
our audit.
For Arora Banthia & Tulsiyan
Chartered Accountants
Firm No.: 007028C
CA Ajay Tulsiyan
Partner
Membership No.: 74868
Indore, 28th May, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of ARIHANT CAPITAL
MARKETS LIMITED as at 31st March 2012 and also the related Profit &
Loss Account and the Cash Flow Statement for the year ended on that
date annexed thereto which we have signed under reference to this
report. These financial statements are the responsibilities of the
Company's Management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditor's Report) (amendment) Order, 2004
issued by the Central Government of India, in terms of sub-section (4A)
of Section 227 of the Companies Act, 1956, and on the basis of such
checks of the books and records of the company as we considered
appropriate and according to the information and explanation given to
us, we enclose in the Annexure, a statement on the matters specified in
paragraph 4 & 5 of the said order, to the extent applicable to the
Company.
4. Further to our comments in the Annexure referred to above, we
report that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
(b) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as it appears from our examination of
books of account.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt by this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet and Profit & Loss Account and
Cash Flow Statement dealt by this report comply with the Accounting
Standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956, to the extent applicable.
(e) On the basis of written representation received by us from the
directors of the Company as at 31st March 2012 and taken on record by
the Board of Directors, we report that none of the director is
disqualified from being appointed as director of the Company under
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
(f) In our opinion, and to the best of our information and according to
the explanation given to us, the said accounts, subject to and read
together with the schedules and notes thereon, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of Balance Sheet of the state of affairs of the Company
as at 31st March 2012;
(ii) In the case of Profit & Loss Account, of the Profit of the Company
for the year ended on that date;
(iii) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
Annexure referred to in paragraph 3 of our report of even date to the
members of Arihant capital markets limited on the accounts for the
period ended 31st March, 2012
1. (a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of its fixed
assets.
(b) The fixed assets of the Company are physically verified by the
management at regular intervals, which in our opinion, is reasonable
considering the size of the Company and the nature of assets. During
the year, as informed to us by management, no material discrepancies
have been noticed on such verification.
(c) In our opinion, substantial parts of the Company's fixed assets
have not been disposed off by the Company, during the year.
2. (a) The securities held as stock in trade have been verified by the
Management with the statement of holdings provided by depository
participants and brokers at reasonable intervals. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, the procedures of confirmation of securities held
as stock in trade followed by the Management are reasonable and
adequate in relation to the size of the Company and the nature of its
business.
(c) On the basis of our examination of the records of the Company
relating to securities held as stock in trade, in our opinion, the
Company has maintained proper records of stock in trade and no material
discrepancies between the book records and the statement of holdings
provided by NSDL, other depository participants and brokers have been
noticed.
3. a) The Company has granted unsecured loan to one company covered in
the register maintained under section 301 of The Companies Act, 1956.
The maximum amount involved was Rs 1761.00 Lacs and the closing balance
is Nil.
b) In our opinion the rate of interest and other term and conditions of
loan given by the company are not prima facie prejudicial to the
interest of the Company.
c) The payments of principal amounts and interest in respect of such
loans during the year has been regular/ as per stipulation.
d) The Company had outstanding unsecured loan from one companies
covered in the register maintained under section 301 of The Companies
Act, 1956. The maximum amount involved was Rs 908.00 Lacs and the closing
balance was Rs 550.00 Lacs.
e) In our opinion the rate of interest and other term and conditions of
loan taken by the company are not prima facie prejudicial to the
interest of the Company.
f) The payments of principal amounts and interest in respect of such
loans during the year has been regular/ as per stipulation.
4. In our opinion and according to the information and explanations
given to us the Company has an adequate internal control procedure
commensurate with the size and nature of its business, with regard to
the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
be entered in the register maintained under section 301 of The
Companies Act, 1956, have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred in (5)(a) above and exceeding the value of Rs Five
Lacs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
as governed by the provision of section 58A and 58AA or any other
relevant provisions of the Act and rules framed their under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that maintenance of cost records has not been
prescribed by the Central Government under section 209 (1) (d) of The
Companies Act, 1956, in respect of the activities carried on by the
Company.
9. a) As per the records of the Company, the company is generally
regular in depositing the statutory dues including provident fund,
income tax, wealth tax, service tax, cess and other material statutory
dues applicable to it with the appropriate authorities
b) According to the information and explanations given to us, no
undisputed amount in respect of income tax, sales tax, service tax,
custom duty, wealth tax, excise duty, cess applicable to it is
outstanding as at the last day of the financial year concerned for a
period of more than six months from the date they became payable.
c) According to the information and explanations given to us and on the
basis of examination of records of the Company provident fund, sales
tax, income tax, wealth tax, cess which have not been deposited on
account of dispute are given below:
10. The Company has no accumulated losses at the end of financial year
and has not incurred cash losses in the current financial year and the
immediately preceding financial year.
11. The Company has not defaulted in payments of any dues to financial
institutions, banks or debenture holders.
12. The Company has not granted any loans and advances on the basis of
the security by way of pledge of shares, debentures or other securities.
Therefore the provisions of clause 4 (xii) of the Order are not
applicable to the Company.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore the provisions of clause 4 (xiii) of the Order
are not applicable to the Company.
14. The Company is dealing in securities for which proper records have
been maintained of the transactions and timely entries have been made
therein. Securities held as stock in trade by the Company are held in
the name of the Company or in the name of its nominees except to the
extent of the exemption granted under Section 49 of the Act.
15. In our opinion and according to the information and explanations
given to us, the terms & conditions on which the Company has given
guarantees for loan taken by other party from bank or financial
institution are not prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
record examined by us, the Company has not taken any term loans.
17. According to the information and explanation given to us and on an
overall examination of Balance Sheet of the Company and the Cash Flow
Statement, in our opinion funds raised on short-term basis have not
been used for long-term investment.
18. The Company has not made preferential allotment of shares to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the period covered by
our audit.
For Arora Banthia & Tulsiyan
Chartered Accountants
Firm No. : 007028C
Ajay Tulsiyan
Partner
Membership No. : 74868
Indore, Dated : 30th May, 2012
Mar 31, 2011
We have audited the attached Balance Sheet of ARIHANT CAPITAL MARKETS
LIMITED as at 31st March 2011 and also the related Profit & Loss
Account and the Cash Flow Statement for the year ended on that date
annexed thereto which we have signed under reference to this report.
These financial statements are the responsibilities of the CompanyÃs
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (AuditorÃs Report) Order, 2003, as amended
by the Companies (AuditorÃs Report) (amendment) Order, 2004 issued by
the Central Government of India, in terms of sub-section (4A) of
Section 227 of the Companies Act, 1956, and on the basis of such checks
of the books and records of the company as we considered appropriate
and according to the information and explanation given to us, we
enclose in the Annexure, a statement on the matters specified in
paragraph 4 & 5 of the said order, to the extent applicable to the
Company.
Further to our comments in the Annexure referred to above, we report
that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
(b) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as it appears from our examination of
books of account.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt by this report are in agreement with the books of account.
(d) In our opinion, the Balance Sheet and Profit & Loss Account and
Cash Flow Statement dealt by this report comply with the Accounting
Standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956, to the extent applicable.
(e) On the basis of written representation received by us from the
directors of the Company as at 31st March 2011 and taken on record by
the Board of Directors, we report that none of the director is
disqualified from being appointed as director of the Company under
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
(f) In our opinion, and to the best of our information and according to
the explanation given to us, the said accounts, subject to and read
together with the schedules and notes thereon, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of Balance Sheet of the state of affairs of the Company
as at 31st March 2011;
(ii) In the case of Profit & Loss Account, of the Profit of the Company
for the year ended on that date;
(iii) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
Annexure referred to in paragraph 3 of our report of even date to the
members of Arihant Capital Markets Limited on the accounts for the
period ended 31st March, 2011
1. (a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of its fixed
assets.
(b) The fixed assets of the Company are physically verified by the
management at regular intervals, which in our opinion, is reasonable
considering the size of the Company and the nature of assets. During
the year, as informed to us by management, no material discrepancies
have been noticed on such verification.
(c) In our opinion, substantial parts of the CompanyÃs fixed assets
have not been disposed off by the Company, during the year.
2. The Company does not have any stock in trade during the year. Hence
clause (ii) of the Order is not applicable.
3. a) The Company has granted unsecured loan to one company covered in
the register maintained under section 301 of The Companies Act, 1956.
The maximum amount involved was Rs. 690.00 Lacs and the closing balance
is Rs. 690.00 Lacs.
b) In our opinion the rate of interest and other term and conditions of
loan given by the company are not prima facie prejudicial to the
interest of the Company.
c) The payments of principal amounts and interest in respect of such
loans during the year has been regular/ as per stipulation.
d) The Company had outstanding unsecured loan from one companies
covered in the register maintained under section 301 of The Companies
Act, 1956. The maximum amount involved was Rs. 71.47 Lacs and the
closing balance was Rs. Nil.
e) In our opinion the rate of interest and other term and conditions of
loan taken by the company are not prima facie prejudicial to the
interest of the Company.
f) The payments of principal amounts and interest in respect of such
loans during the year has been regular/ as per stipulation.
4. In our opinion and according to the information and explanations
given to us the Company has an adequate internal control procedure
commensurate with the size and nature of its business, with regard to
the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. a) In our opinion and according to the information and explanations
given to us, we are of the opinion that the transactions that need to
be entered in the register maintained under section 301 of The
Companies Act, 1956, have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred in (5)(a) above and exceeding the value of ` Five
Lacs with any party during the year have been made at prices which are
reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
as governed by the provision of section 58A and 58AA or any other
relevant provisions of the Act and rules framed their under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that maintenance of cost records has not been
prescribed by the Central Government under section 209 (1) (d) of The
Companies Act, 1956, in respect of the activities carried on by the
Company.
9. a) As per the records of the Company, the company is generally
regular in depositing the statutory dues including provident fund,
income tax, wealth tax, service tax, cess and other material statutory
dues applicable to it with the appropriate authorities.
b)There were no dues on account of Cess under Sec.441A of The Companies
Act, 1956 since the aforesaid section has not yet been made effective
by the Central Government of India.
c) According to the information and explanations given to us, no
undisputed amount in respect of income tax, sales tax, service tax,
custom duty, wealth tax, excise duty, cess applicable to it is
outstanding as at the last day of the financial year concerned for a
period of more than six months from the date they became payable.
d) According to the information and explanations given to us and on the
basis of examination of records of the Company provident fund, sales
tax, income tax, wealth tax, cess which have not been deposited on
account of dispute are given below:
Name of the Nature of Year Amount Forum where
Statue Dues (Rs in deposit
acs) is pending
Income Tax Income Tax 1999-2000 10.00 Commissioner of
Act, 1961 Penalty Income Tax -
Appeals
Income Tax Assessment 2008-2009 42.80 Commissioner of
Act, 1961 u/s 143(3) Income Tax -
Appeals
10. The Company has no accumulated losses at the end of financial year
and has not incurred cash losses in the current financial year and the
immediately preceding financial year.
11. The Company has not defaulted in payments of any dues to financial
institutions, banks or debenture holders.
12. The Company has not granted any loans and advances on the basis of
the security by way of pledge of shares, debentures or other
securities. Therefore the provisions of clause 4 (xii) of the Order are
not applicable to the Company.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore the provisions of clause 4 (xiii) of the Order
are not applicable to the Company.
14. The Company is dealing in securities for which proper records have
been maintained of the transactions and timely entries have been made
therein. Securities held as stock in trade by the Company are held in
the name of the Company or in the name of its nominees except to the
extent of the exemption granted under Section 49 of the Act.
15. In our opinion and according to the information and explanations
given to us, the terms & conditions on which the Company has given
guarantees for loan taken by other party from bank or financial
institution are not prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
record examined by us, the Company has not taken any term loans.
17. According to the information and explanation given to us and on an
overall examination of Balance Sheet of the Company and the Cash Flow
Statement, in our opinion funds raised on short-term basis have not
been used for long-term investment.
18. The Company has not made preferential allotment of shares to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the period covered by
our audit.
For Arora Banthia & Tulsiyan
Chartered Accountants
Firm No. : 007028C
Ajay Tulsiyan
Partner
Membership No. : 74868
Indore, Dated : 30th May, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of ARIHANT CAPITAL MARKETS
LIMITED as at March 31, 2010 and also the Profit & Loss Account and the
Cash Flow Statement for the year ended on that date annexed thereto.
These financial statements are the responsibilities of the Companys
Management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis
for our opinion.
As required by the Companies (Auditors Report) Order, 2003, issued by
the Central Government of India, in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, we enclose in the Annexure, a
statement on the matters specified in paragraph 4 & 5 of the said
order, to the extent applicable to the Company.
Further to our comments in the Annexure referred to above, we report
that:
(a) We have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purpose of our
audit.
(b) In our opinion, proper books of accounts, as required by law, have
been kept by the Company so far as it appears from our examination of
books of account.
(c) The balance sheet, profit & loss account and cash flow statement
dealt by this report are in agreement with the books of account.
(d) In our opinion, the balance sheet and profit & loss account and
cash flow statement dealt by this report comply with the accounting
standards referred to in sub section (3C) of section 211 of the
Companies Act, 1956, to the extent applicable.
(e) On the basis of written representation received by us from the
directors of the Company as at March 31, 2010 and taken on record by
the Board of Directors, we report that none of the directors is
disqualified from being appointed as director of the Company under
clause (g) of sub-section (1) of section 274 of the Companies Act,
1956.
(f) In our opinion, and to the best of our information and according to
the explanation given to us, the said accounts, subject to and read
together with the schedules and notes thereon, give the information
required by the Companies Act, 1956 in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
(i) In the case of Balance Sheet of the state of affairs of the Company
as at March 31, 2010;
(ii) In the case of Profit & Loss Account, of the Profit of the Company
for the year ended on that date;
(iii) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
Annexure referred to in paragraph 3 of our report of even date
1. (a) The Company has maintained proper records to show full
particulars, including quantitative details and situation of its fixed
assets.
(b) The fixed assets of the Company are physically verified by the
management at regular intervals, which in our opinion, is reasonable
considering the size of the Company and the nature of assets. During
the year, as informed to us by management, no material discrepancies
have been noticed on such verification.
(c) In our opinion, substantial parts of the Companys fixed assets
have not been disposed off by the Company, during the year.
2. The Company does not have any stock in trade during the year. Hence
clause (ii) of the order is not applicable.
3. (a) The Company has taken unsecured loan from one companies covered
in the register maintained under section 301 of the Companies
Act, 1956. The maximum amount involved was Rs. 792.15 lacs and the
closing balance is Rs. 70.00.
(b) In our opinion the rate of interest and other term and conditions
of loan taken by the company are not prima facie prejudicial to the
interest of the Company.
(c) The payments of principal amounts and interest in respect of such
loans during the year has been regular/ as per stipulation.
(d) The Company has not granted any loan to company for covered in the
register maintained under section 301 of the Companies Act, 1956.
4. In our opinion and according to the information and explanations
given to us the Company has an adequate internal control procedure
commensurate with the size and nature of its business, with regard to
the purchase of inventory and fixed assets and for the sale of goods
and services. During the course of our audit we have not observed any
continuing failure to correct major weaknesses in internal controls.
5. (a) In our opinion and according to the information and
explanations given to us, we are of the opinion that the transactions
that need to
be entered in the register maintained under section 301 of the
Companies Act, 1956, have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts and
arrangements referred in (5)(a) above and exceeding the value of Rs.
Five Lacs with any party during the year have been made at prices which
are reasonable having regard to the prevailing market prices at the
relevant time.
6. In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposit from the public
as governed by the provision of section 58A and 58AA or any other
relevant provisions of the Act and rules framed their under.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We are informed that maintenance of cost records has not been
prescribed by the Central Government under section 209 (1) (d) of the
Companies Act, 1956, in respect of the activities carried on by the
Company.
9. (a) As per the records of the Company, the company is generally
regular in depositing the statutory dues including provident fund,
income tax, wealth tax, service tax, cess and other material statutory
dues applicable to it with the appropriate authorities.
(b) There were no dues on account of Cess under Sec.441A of the
Companies Act, 1956 since the aforesaid section has not yet been made
effective by the Central Government of India.
(c) According to the information and explanations given to us, no
undisputed amount in respect of income tax, sales tax, service tax,
custom duty, wealth tax, excise duty, cess applicable to it is
outstanding as at the last day of the financial year concerned for a
period of more than six months from the date they became payable.
d) According to the information and explanations given to us and on the
basis of examination of records of the Company provident fund, sales
tax, income tax, wealth tax, cess which have not been deposited on
account of dispute are given below:
Amount Forum
where deposit
Name of
the Statue Nature
of Dues Year
(Rs. in
lacs) is pending
Income Tax Act, 1961 Income Tax
Penalty 1999-2000 10.00 Commissioner of
Appeals
10. The Company has no accumulated losses at the end of financial year
and has not incurred cash losses in the current financial year and the
immediately preceding financial year.
11. The Company has not defaulted in payments of any dues to financial
institutions, banks or debenture holders.
12. The Company has not granted any loans and advances on the basis of
the security by way of pledge of shares, debentures or other
securities. Therefore the provisions of clause 4 (xii) of the order are
not applicable to the Company.
13. The Company is not a chit fund or a nidhi/mutual benefit
fund/society. Therefore the provisions of clause 4 (xiii) of the order
are not applicable to the Company.
14. In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly the
provision of clause 4(ix) of the Order is not applicable to the
Company.
15. In our opinion and according to the information and explanations
given to us, the terms & conditions on which the Company has given
guarantees for loan taken by other party from bank or financial
institution are not prejudicial to the interest of the Company.
16. According to the information and explanations given to us and the
record examined by us, the Company has not taken any term loans.
17. According to the information and explanation given to us and on an
overall examination of Balance Sheet of the Company and the Cash Flow
Statement, in our opinion funds raised on short-term basis have not
been used for long-term investment.
18. The Company has not made preferential allotment of shares to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956 during the year.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money through public issue during
the year.
21. Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the Company has been noticed or reported during the course of our
audit.
For Arora Banthia & Tulsiyan
Chartered Accountants Firm No.: 007028C
Ajay Tulsiyan
Partner
Membership No.: 74868
Indore, Dated: May 29, 2010
Schedule 14 - Notes to the Financial Statements
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