THE MEMBERS OF
R R SECURITIES LIMITED
Report on the Financial Statements
I have audited the accompanying financial statements of R R Securities Limited("the Company") which comprises the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Financial Statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequaie internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
My responsibility is to express an opinion on these financial statements based on myaudit.
I have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.
I conducted my audit in accordance with the Standards on Auditing specified undersection 143(10) of the Act. Those Standards require that comply with ethical requirementand plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial control systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the financial statements.
In my opinion and to the best of my information and according to the explanations givento me the aforesaid financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31s'March 2017. 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 (II) of Section 143 ofthe Act I give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act. I report that:
a) I have sought and obtained all the information and explanations which to the best ofmy knowledge and belief were necessary for the purpose of my audit.
b) In my opinion proper books of account as required by law have been kept by theCompany so far as it appears from my examination of those books.
e) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d) In my opinion the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act. read with Rule 7of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to myseparate report in "Annexure B"; and
g) With respect to other matters to be included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 in my opinion and to thebest of my information and according to the explanations given to me:
i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statement;
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.
iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from November 82016 to December 30 2016. Based on audit procedures and relying on the managementrepresentation. 1 report that the disclosures are in accordance with the books of accountsmaintained by the company and as produced to me by the Management. (Refer Note : 33 to theFinancial Statements)
| ||For Nirav A Patel & Associates |
| ||Chartered Accountants |
| ||FRNo: 135076W |
|Place of Signature: Ahmedabad ||Nirav Patel |
|Date: 30/05/2017 ||(Proprietor) |
| ||Membership No: 151282 |
ANNEXURE-A TO INDEPENDENT AUDITORS REPORT:
(Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of my report of even date.)
(i) In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) Majority of the assets has been physically verified by the management according to aprogram designed to cover substantial items which in my opinion is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the fixedassets during the year no material discrepancies between the book records and physicalinventory were noticed on such verification.
c) According to the information and explanations given to me and records examined by meand based on the examination of the registered deed transfer deeds mutation of titlepapers provided to me I report that the title deed comprising all the immovableproperties of land and building which are freehold in the name of the Company as at thebalance sheet date except the following:
i. In respect of the title of the immovable property Office building recorded as FixedAsset in the books of account of the company is not in the name of the Company.
(ii) a) The inventory held by the company physically and in demat form has beenverified during the year by management. In mv Opinion the frequency of verification isreasonable.
b) In my opinion and according to the information and explanation given to me theprocedures of physical verification of stocks followed by the management are reasonableand adequate in relation to the size of company and nature of its business.
c) In my opinion and according to the information and explanation given to me. TheCompany has maintained proper records of its inventory and discrepancies noticed onverification between physical verification have been properly dealt with in the books ofaccount of the Company.
(iii) In respect of the loans secured or unsecured to the companies. Firms or otherparties covered in the register maintained under section 189 of the Companies Act.
a) The Company during the year under consideration has not granted any loan toCompanies or parties covered in the register required maintained under Section 189 of theAct.
b) In my opinion and according to the information and explanations given to me theterms and conditions on which loan has been granted to companies covered under theregister required maintained under Section 189 of the Companies Act 2013 are not primafacie prejudicial to the interest of the Company
c) There is no overdue amount of loans taken by the Company in accordance with termsand conditions on which loan has been taken.
(iv) Based on information and explanation given to me in respect of loans investmentsguarantees and securities the Company has complied with the provisions of Section 185 and186 of the Act
(v) The Company has not accepted any deposits from the public and consequently thedirectives issued by the Reserve Bank of India and the provisions of section 73 to 76 orany other relevant provisions of the Companies Act and rules framed there under are notapplicable to the company.
(vi) According to the information and explanation given to me the Central Governmenthas not prescribed the maintenance of cost records under sub section (1) of Section 118 ofthe Companies Act 2013 in respect of business carried out by the Company.
(vii) a) According to the records of the Company the Company is generally regular indepositing with appropriate authorities undisputed statutory dues including ProvidentFund Employees' State Insurance. Income Tax Sales Tax Wealth Tax Service Tax Duty ofCustoms Duty of Excise Value Added Tax Cess and any other statutory dues applicable toit. According to the information and explanations given to me no undisputed amountspayable in respect of the aforesaid statutory dues were outstanding as at 31st March. 2017for a period of more than six months from the date they became payable.
b) According to the information and explanation given to me there are no dues ofIncome Tax Wealth tax Service Tax and Cess which have not been deposited on account ofany dispute.
c) According to the information given to me there were no amounts which were requiredto be transferred to the Investor Education And Protection Fund by the Company.
(viii) According to the information and explanation given to me the Company has notdefaulted in repayment of dues to a financial institution or bank or Debenture Holders.
(viii) The Company during the year under consideration has neither raised money by wayof public issue offer nor has obtained any term loans. Therefore paragraph 3(ix) of theOrder is not applicable.
(x) Based on the audit procedures performed and representation obtained frommanagement I report that no case of material fraud on or by the Company has been noticedor reported during the year under audit.
(xi) According to the information and explanations given to me. no managerialremuneration has been paid/provided in view of the provisions of Section 197 read withSchedule V to the Act. Therefore paragraph 3(xi) of the Order is not applicable.
(xii) In our opinion and according to the information and explanations given to me thecompany is not a Nidhi Company. Accordingly paragraph 3(xii) is not applicable.
(xiii) According to the information and explanations given to me and based on theexamination of the records of the company transactions with the related parties are incompliance with section 177 to 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standard.
(xiv) According to the information and explanations given to me and based on theexamination of the records of the company the company has not made any preferentialallotment or private placement of shares or partly convertible debentures during the yearunder consideration.
(xv) According to the information and explanations given to me and based on theexamination of the records of the company the company has not entered into non cashtransactions with the directors or person connection with him. Accordingly paragraph 3(xv)is not applicable.
(xvi) The company is not required to be registered under section 45-1A of the ReserveBank of India Act. 1934. The Registration obtained has been surrender during the yearunder consideration.
| ||For Nirav A Patel & Associates |
| ||Chartered Accountants |
| ||FRNo: 135076W |
|Place : Ahmedabad ||Nirav Patel |
|Date: 30/05/2017 ||(Proprietor) |
| ||Membership No: 151282 |
"Annexure B " to the Independent Auditor's Report of even date on theFinancial Statements of R R Securities limited
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
I have audited the internal financial controls over financial reporting of the Companyof March 31.2017 in conjunction vvith my audit ot the financial statements of the Companyfor the year ended 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 oyer Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
My responsibility is to express an opinion on the Company's internal financial controlsover financial reporting based on my audit. I conducted my audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act. 2013 to the extent applicable toan audit of internal financial controls both applicable to an audit of Internal FinancialControls and both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects. My audit involves performingprocedures to obtain audit evidence about the adequacy of the internal financial controlsystem over financial reporting and their operating effectiveness. My audit of internalfinancial controls over financial reporting assessing the risk that a material weaknessexists and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend upon on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.
I believe that the audit evidence I have obtained is sufficient and appropriate toprovide a basis for my audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning ol 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 lor 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 ot the assets of the company; (2) provide reasonable assurance thattransactions arc 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 ot the inherent limitations ol internal financial controls over financialreporting including the possibility ot 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.
In my opinion the Company has in all material respects an adequate internalfinancial controls system o\ei financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls over Financial Reporting issues by the Institute of CharteredAccountants of India.
| ||For. Nirav A Patel & Associates |
|Place of Signature: Ahmedabad ||Chartered Accountant |
|Date: 30/05/2017 ||FRNo: 13 5076W |
| ||Nirav Patel |
| ||(Proprietor) |
| ||Membership No: 151282 |