The Members of
RGF CAPITAL MARKETS LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of M/S RGFCAPITAL MARKETS LIMITED which comprise the Balance Sheet as at March 31 2018 theStatement of Profit and Loss Cash Flow Statement for the year then ended and a summaryof significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
Management is responsible for the matters stated in section 134(5) ofthe companies act 2013 (the Act) with respect to the preparation &presentation 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 Standardsreferred under Section 1 3 3 of the a This ct. responsibility 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 makingjudgements and estimates that are reasonable and prudent and design implementation a ndmaintenance of a dequate 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.
Our responsibility is to express an opinion on these financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and rules made there under. We conducted ouraudit in accordance with the Standards on Auditing specified under Section 143(10) of theAct. Those Standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable a ssurance about whether the financial statements a re freefrom material misstatement. An audit involves performing procedures to obtain auditevidence about the amounts and disclosures in the financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal control relevant to theCompany's preparation and fair presentation of the financial statements in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by management as well as evaluating the overall presentation ofthe financial statements.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on these financial statements.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India: a) In the case of the Balance Sheet ofthe state of affairs of the Company as at March 31 2018; b) In the case of the Statementof Profit and Loss of the Profit for the year ended on that date. c) In the case of theCash Flow Statement of the cash flows for the period 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) of section 143 of the Act to report on the matters Specified in paragraphs 3 and 4of the said Order we annex annexure B hereto a statement on the matters specifiedtherein.
2. As required by section 143(3) of the Act we report that:
a. We have sought and obtained all the information and explanationswhich 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 Companyso far as appears from our examination of those books. c. The Balance Sheet the statementof Profit and Loss and the cash flow statement dealt with by this Report are in agreementwith the books of account. d. In our opinion the aforesaid financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe companies (Accounts) Rules 2014 ; e. On the basis of written representations receivedfrom the directors as on March 31 2018 and taken on record by the Board of Directorsnone of the directors is disqualified as on March 31 2018 from being appointed as adirector in terms of section 164(2) of the Companies Act 2013. f. With respect toadequacy of internal financial controls over financial reporting of the Company andoperating effectiveness of such controls refer to our separate report in AnnexureA
g. In our opinion and to the best of our information and according tothe explanations given to us we report as under with respect to other matters to beincluded in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014:
(i) The Company does not have any pending litigations which wouldimpact its financial position (ii) The Company does not have any long term contractsincluding derivatives contracts for which there were any material foreseeable losses;(iii) There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.
Place: Kolkata Date: 30.05.2018
For A. Balasaria & CO Chartered Accountants
(ANIRUDH KUMAR BALASARIA) Proprietor
FIRM REG NO: 319300E
Membership No. 054778
Annexure A to the Auditors' Report
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 financialreporting of RGF CAPITAL MARKETS LIMITED (the Company) as of 31 March 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India(ICAI'). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the Guidance Note) and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 aboutthe adequacy of the internal financial controls system over financial reporting a nd theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail a ccurately a nd fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as at 31 March 2018 based onthe 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.
Place: Kolkata Date: 30.05.2018
Annexure B to the Auditors' Report
[Referred to in paragraph 1 under the heading Report on OtherLegal and Regulatory Requirements' of our Report of even date to the members of M/s RGFCAPITAL MARKETS LIMITED on the accounts of the company for the year ended 31st March2018]
Based upon the audit procedures performed for the purpose of reportingthe true and fair view of the financial statements and in our opinion and in terms of theinformation and explanations given to us and the books and records examined by us in thenormal course of audit we report that :- (i) In respect of its fixed assets : (a) TheCompany has maintained proper records showing full particulars including quantitativedetails and situation of the fixed assets. (b) As explained to us fixed assets have beenphysically verified by the management at regular intervals during the year under audit ina phased periodical manner which in our opinion is reasonable having regard to size ofthe company and nature of its business. According to the information and explanationsgiven to us no material discrepancies were noticed on such verification. (c) According tothe information and explanations given to us and on the basis of our examination of therecords of the Company the title deeds of immovable properties are held in the name ofthe Company.
(ii) In respect of its inventory :
The Company has no inventory as on 31st March 2018.
(iii) There are no Companies covered in the registered maintained undersection 189 of the Act for the purpose of loans granted by the Company.
(iv) In our opinion and according to the information and explanationsgiven to us the company is a NBFC and the provisions of section 185 and 186 of the Actwith respect to the loans investments guarantees and security does not applicable to theCompany.
(v) In our opinion and according to the information and explanationgiven to us the company has not accepted any deposits during the year under audit henceclause 3(v) of the said order is not applicable to the company.
(vi) In our opinion and according to the information and explanationgiven to us the Central Government has not prescribed any maintenance of cost recordsunder sub-section (1) of Section 148 of the Act in respect of the activities carried onby the Company; hence clause 3(vi) of the said order is not applicable to the company.
(vii) In respect of statutory dues :
(a) In our opinion and according to the information and explanationgiven to us the Company has generally been regular in depositing undisputed statutorydues including Income-tax a nd a ny other statutory dues with the a ppropriate authorities. According to the information and explanations given to us no undisputedamounts payable in respect of the aforesaid dues were outstanding as at 31 st March 2018for a period of more than six months from the date of becoming payable.
(b) According to the information and explanations given to us therewere no amounts payable in respect of Income-tax or Cess which have not been deposited onaccount of any dispute.
(viii) In our opinion and according to the information and explanationgiven to us the company does not have a ny loans or borrowings from the financialinstitution bank Government or debenture holders during the year under audit .
(ix) In our opinion and according to the information and theexplanation given to us the company has not raised money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.
(x) In our opinion and according to the information and the explanationgiven to us no fraud by the Company or any fraud on the Company by its officers oremployees has been noticed or reported during the course of our audit.
(xi) In our opinion and according to the information and theexplanation given to us no managerial remuneration has been paid or provided by theCompany.