R R Financial Consultants Ltd.
|BSE: 511626||Sector: Financials|
|NSE: N.A.||ISIN Code: INE229D01011|
|BSE 00:00 | 28 Jun||R R Financial Consultants Ltd|
|NSE 05:30 | 01 Jan||R R Financial Consultants Ltd|
R R Financial Consultants Ltd. (RRFINCONS) - Auditors Report
Company auditors report
TO THE MEMBERS OF
RR FINANCIAL CONSULTANTS LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the a ccompanying standalone financial statements of RR FINANCIAL CONSULTANTS LIMITED (the Company) which comprise the balancesheet as at 31st March 2020 and the statement of Profit and Loss (including OtherComprehensive Income) Statement of changes in equity and Statement of cash flows for theyear then ended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information. In our opinion and to the best ofour information and according to the explanations given to us the aforesaid standalonefinancial statements give the information required by the Companies Act 2013 (theAct)in the manner so required and give a true and fair view in conformity with theIndian Accounting Standards prescribed under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended (Ind AS) andother accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2020 and its profit total comprehensive income its cash flowsand the changes in equity 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 responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note 55 of Standalone financial statements asregards to the management evaluation of COVID-19 impact on the future performance of thecompany. Our opinion is not modified in respect of this matter.
Key Audit Matters
We have determined that there are no key audit matters to communicatein our report.
Information Other than the Standalone financial statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the standalone financial statements and our auditor'sreport thereon. The Annual Report is expected to be made available to us after the date ofthis Auditors' Report. Our opinion on the standalone financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work we have performed we conclude that there is a material misstatement ofthis other information; we are required to report that fact. We have nothing to report inthis regard.
Management's Responsibility for the Standalone FinancialStatements
The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (the Act) with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance (including other comprehensiveincome) cash flows and change in equity of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standards(Ind AS)prescribed 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 standalone Ind AS financial statements that give atrue 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 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 theCompany's financial reporting process.
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment a nd maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control. Obtain an understanding of internal financial controls relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls system in place and theoperating effectiveness of such controls. Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management. Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors' Report) Order2016 (the Order) issued by the Central Government of India in terms ofsub-section (11) of section 143 of the Act (hereinafter referred as theorder)based on our audit we give in the Annexure A a statement on thematters Specified in paragraphs 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 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 beenkept by the Company so far as it appears from Our examination of those books;
c. The Balance Sheet the Statement of Profit and Loss (including Othercomprehensive income) the Cash Flow Statement and statement change in equity dealt withby this Report are in agreement with the books of account;
d. In our opinion the aforesaid standalone financial statements complywith the applicable Indian Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2015;
e. On the basis of written representations received from the directorsas on 31 March 2020 and taken on record by the Board of Directors none of the directorsis disqualified as on 31 March 2020 from being appointed as a director in terms ofSection 164(2) of the Act;
f. With respect to the adequacy of internal financial controls over thefinancial reporting of the Company and the operating effectiveness of such controls referto our separate report in Annexure B
g. With respect to the matter to be included in the Auditor'sReport under section 197(16): The Company has not paid any managerial remuneration for theyear ended 31st March 2020 to its directors
h. With respect to the other matters to be included in theAuditor'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 theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsstandalone financial position in its financial statements Refer Note 44 and 52 to thefinancial statements;
iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company during the year in consideration.
Annexure - A to the Independent Auditors' Report
The Annexure referred to in Our Independent Auditors' Report tothe members of the Company on the standalone financial statements for the year ended 31March 2020 we report that:
i. a) The Company has maintained proper records of Fixed Assets butfull particulars including quantitative details and situation of fixed assets has not beenshown.
b) According to information and explanation given to us the managementduring the year has physically verified the fixed assets in a phased periodical mannerwhich in our opinion is reasonable having regard to the size of the company and nature ofits assetmaterial discrepancies were noted.
c) According to the information and explanation given to us and on thebasis of the examination of records of the company the title deeds of immovableproperties are held in the name of the company.
ii. As explained to us physical verification of inventory of shares/debentures has been conducted at reasonable intervals by the management a nddiscrepancies noticed on such physical verification between physical stocks and booksrecords were not material considering the operations of the company and the same have beenproperly dealt with in the book of account.
iii. During the year the Company has granted loans to the parties(Group companies including subsidiaries) listed in the register maintained under Section189 of the Act. The terms & condition on which the loan has been granted were notprima facie prejudicial to the interest of the company. According to information andexplanation given to me there is no stipulation with regard to its repayment andinterest. The said loan is repayable on demand.
iv. In our opinion and according to the information and explanationgiven to us the company has complied with the provisions of section 185 and 186 of thecompanies Act 2013 with respect to loans and investment made.
v. The Company has not accepted any deposits from the public within themeaning of Sections 73 to 76 of the Act and the rules framed there under to the extentnotified.
vi. The Central Government has not prescribed the maintenance of costrecords under section 148(1) of the Act for any of the services rendered by the Company.
vii. a. According to the records of the Company and the information andexplanation given to us the Company has been generally regular in depositing itsundisputed statutory dues such as Provident Fund Employees' State Insurance IncomeTax Service Tax goods and service tax Customs Duty Excise Duty Value added tax Cessand any other material statutory dues whichever is applicable to the Company with theappropriate authorities during the year. According to the information and explanationsgiven to us no undisputed amounts payable in respect of aforesaid dues as at 31 March2020 for a period of more than six months from the date they became payable. b. Accordingto the information a nd explanation given to us no statutory due is outstanding onaccount of dispute.
viii. According to the records of the Company examined by us and theinformation and explanation given to us the company does not have any loans or borrowingsfrom the financial institution or bank or debenture holders as at the balance sheet date.Accordingly Paragraph 3(viii) of the Order is not applicable.
ix. In our opinion and according to the information and theexplanations given to me the Company did not raise any money by way of initial publicoffer or further public offer (including debt instruments). Further the company does nothave any term loans as at the balance sheet date. Accordingly paragraph 3(ix) of theOrder is not applicable.
x. Based upon the audit procedures performed and to the best of ourknowledge and belief and according to the explanations given to us no fraud by thecompany or any fraud on the company by its officers or employees has been noticed orreported during the year.
xi. According to the information and explanations given to us and basedon our examination of the records of the company the company has paid/provided formmanagerial remuneration in accordance with the requisite approval mandated by theprovisions of section 197 read with schedule V to the Act.
xii. In our opinion and according to the information and explanationsgiven to us the company is not a nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.
xiii. According to the information and explanations given to us andbased on our examination of the records of the company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.
xiv. According to the information and explanations given to us andbased on our examination of the records of the company the company has not made anypreferential allotment or private allotment of shares or fully or partly convertibledebentures during the year.
xv. According to the information and explanations given to us and basedon our examination of the records of the company the company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable to the company.
xvi. The company has obtained registration under section 45-IA of theReserve Bank of India Act 1934.
For: G.C.AGARWAL & ASSOCIATES
Annexure B to the Independent Auditors' Report
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financialreporting of R R FINANCIAL CONSULTANTS LIMITED (the Company) as of 31 March2020 in conjunction with our audit of the standalone Ind AS financial statements of theCompany for the year 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 andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable 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. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and 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 internalfinancial controls 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 the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorizations of management and directors of thecompany; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould 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 2020 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.