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Aravali Securities & Finance Ltd.

BSE: 512344 Sector: Financials
NSE: ARAVALISEC ISIN Code: INE068C01015
BSE 00:00 | 24 Apr 2020 Aravali Securities & Finance Ltd
NSE 05:30 | 01 Jan 1970 Aravali Securities & Finance Ltd

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OPEN 2.49
PREVIOUS CLOSE 2.38
VOLUME 1
52-Week high 3.77
52-Week low 2.38
P/E 0.93
Mkt Cap.(Rs cr) 4
Buy Price 2.50
Buy Qty 9.00
Sell Price 2.49
Sell Qty 49999.00
OPEN 2.49
CLOSE 2.38
VOLUME 1
52-Week high 3.77
52-Week low 2.38
P/E 0.93
Mkt Cap.(Rs cr) 4
Buy Price 2.50
Buy Qty 9.00
Sell Price 2.49
Sell Qty 49999.00

Aravali Securities & Finance Ltd. (ARAVALISEC) - Auditors Report


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Company auditors report

To the Members of Aravali Securities & Finance Limited

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of ARAVALI SECURITIES &FINANCE LIMITED (''the Company") which comprise the Balance Sheet as at 31stMarch 2019 and the statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 "(the Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 and its loss and its cash flows forthe year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled ourother ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ('the Act') with respect to the preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

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

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements

• As part of an audit in accordance with SAs we exercise professional judgmentand maintain professional skepticism throughout the audit. We also: Identify and assessthe risks of material misstatement of the financial statements whether due to fraud orerror design and perform audit procedures responsive to those risks and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign 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 whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe 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 auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 in terms of sub- section (11) of Section 143of the Actwe give in the ‘Annexure A' statement on the matters specified in paragraphs 3 and 4of the Order.

2. As required under the provisions of Section 143(3) of the Act we report that:

a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit:

b. In our opinion proper books of account as required by law have been kept by theCompany so far as appears form our examination of those books:

c. The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this

Report are in agreement with the books of account:

d. In our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014;

e. On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in termsof Section 164 (2) of the Act;

f. With respect to the adequacy of internal financial controls over financial reportingof the Company and operating effectiveness of such controls refer to our separate reportin ‘Annexure-B';

g. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition except the sales tax liability pending in appeals/ rectification of Rs.160969 asreferred in note 1.10

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

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

For Rajan Goel & Associates
Chartered Accountants
(Firms Regn.No.004624N)
Place:Gurgaon Rajan Kumar Goel
Date: 21st May 2019 Proprietor
Membership No. 083829

ANNEXURE-A TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements of ourreport of even date to the members of Aravali Securities & Finance Limited as at andfor the year ended 31st March 2019)

i. a. The Company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.

b. The fixed assets of the Company were physically verified by the management duringthe year. In our opinion frequency of physical verification is reasonable having regardto the size of the operation of the Company. On the basis of explanations received in ouropinion no discrepancy between the book records and physical inventory has been noticedin respect of assets physically verified.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii As explained to us the inventories were physically verified during the year by themanagement at reasonable intervals and no material discrepancy was noticed on physicalverification except to the extent of shares not registered in the name of the Company asmentioned in Note 11.

iii. The Company has not given any loan to Company covered in the register maintainedunder

Section 189 of the Companies Act 2013.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securities.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public. vi. The Central Government has not prescribedmaintenance of the cost records under section 148(1) of the Companies Act 2013 in respectof any of the company's activities.

vii. a. According to the information and explanations given to us and the books andrecords as produced and examined by us in our opinion the undisputed statutory duesincluding in respect of provident fund employees' state insurance income- tax salestax service tax duty of customs duty of excise value added tax cess and otherstatutory dues as applicable have been regularly deposited by the Company during the yearwith the appropriate authorities. There were no undisputed statutory dues as at the lastday of the financial year outstanding for a period of more than six months from the datethey became payable.

b. According to the records of the company there were no dues of income tax servicetax duty of customs duty of excise value added tax which have not been deposited onaccount of disputes. The particulars of dues of sales tax as at 31st March2018 which have not been deposited on account of disputes are as under:

Name of the dues Period Amount under dispute not yet deposited Forum before whom pending
Sales Tax Financial year 1984-851985-86 2000-01 and 2001-02 Rs. 160969 Asst.Commissioner of Sales Tax (Appeals) Delhi

viii. The Company did not have any outstanding dues to financial institutions banks ordebenture holders during the year except sum of Rs. 142000 received from Fully Convertiblepartly paid up Debentures which were convertible into fully paid up equity shares andwhich have not been converted pending allotment money in arrears as mentioned in Note 1.2& Note 4.

ix. The Company has not raised any money by way of initial public offer or furtherpublic offer (including debit instruments) and term loans during the period. Accordinglyparagraph 3 (ix) of the Order is not applicable to the Company.

x. In our opinion and according to the information and explanations given to us nofraud by the Company or on the Company by its officers or employees have been noticed orreported during the year.

xi. The Company has not paid/provided for managerial remuneration and accordinglyparagraph 3 (xi) of the Order is not applicable to the Company.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3 (xii) of the Order is notapplicable to the Company.

xiii. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act and details of such transactions have beendisclosed in the financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe period. Accordingly paragraph 3 (xiv) of the Order is not applicable to the Company.

xv. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3 (xv)of the Order is not applicable to the Company.

xvi. The company ceased to be a Non Banking Financial Institution as the RegistrationCertificate of the Company under the Section 45 IA of the Reserve Bank of India Act 1934has been cancelled by the Reserve Bank of India vide letter dated 12th September 2018since the Company failed to achieve the net owned fund of two hundred lakhs of rupeesbefore 1st April 2017 in terms of the Revised Regulatory Framework for NBFCs read withNotification No DNBR.007/CGM(CDS)-2015 dated 27th March 2015. Consequently the Company isno longer engaged in the business of a non banking finance company.

For Rajan Goel & Associates
Chartered Accountants
(Firms Regn.No.004624N)
Place:Gurgaon Rajan Kumar Goel
Date: 21st May 2019 Proprietor
Membership No. 083829

ANNEXURE-B TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AravaliSecurities & Finance Limited ("the Company") as of 31st March2019 in conjunction with our audit of the financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany'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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2019based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India.

For Rajan Goel & Associates
Chartered Accountants
(Firms Regn.No.004624N)
Place: Gurgaon Rajan Kumar Goel
Date: 21st May 2019 Proprietor
Membership No. 083829


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