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Ranjit Securities Ltd.

BSE: 531572 Sector: Financials
NSE: N.A. ISIN Code: INE863D01017
BSE 05:30 | 01 Jan Ranjit Securities Ltd
NSE 05:30 | 01 Jan Ranjit Securities Ltd

Ranjit Securities Ltd. (RANJITSECURITIE) - Auditors Report

Company auditors report

To

The Members of Ranjit Securities Limited

Report on the audit of the financial statements

Opinion

We have audited the accompanying financial statements of Ranjit Securities Limited ("theCompany") which comprise the balance sheet as at March 31 2020 and the Statementof Profit and Loss and statement of cash flows for the year then ended and notes to thefinancial statements including the summary of significant accounting policies and otherexplanatory 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 ('Act') in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actand other accounting principles generally accepted in India of the state of affairs ofthe Company as at March 31 2020 its profit and cash flows for the year ended on thatdate.

Basis for opinion

We conducted our audit in accordance with the standards on auditing specified undersection 143 (10) of the Companies Act 2013. Our responsibilities under those Standardsare further described in the auditor's responsibilities for the audit of the financialstatements section of our report. We are independent of the Company in accordance with thecode of ethics issued by the Institute of Chartered Accountants of India together with theethical requirements that are relevant to our audit of the financial statements under theprovisions of the Act and the rules there under and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the code of ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Emphasis of Matter

1. As described in Note No 22(v) to the standalone financial results in respect ofaccounts overdue but standard at 29/02/2020 where moratorium benefit had been granted tothe customers the staging of those accounts at 31/03/2020 is based on the days past duestatus as on 29/02/2020 in accordance with the Reserve Bank of India COVID19 Regulatorypackage.

2. As described in Note No.22 (vi) to the standalone financial results the extend towhich the COVID19 pandemic will affect the financial performance of the company is dependenton the future developments which is highly uncertain as of now.

3. A case had been filed before CJM Gwalior by the Registrar of the Companies M.P.against the company and its directors under section 295 (4) & (5) 211 372 (8) 383(1A) & 209A of Companies Act 1956 which is still not concluded.

4. The Company's shares are suspended from trading at Bombay Stock Exchange Ltd. (BSE)However the company has applied for Revocation of suspension of share with BSE which isyet to be concluded.

Our opinion is not modified in respect of these matters.

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.

We have determined the matters described below to be the key audit matters tocommunicate in our report.

Sl No Key Audit Matters Auditor's Response
1 Impairment of loans: Principal audit procedures performed:
(a) Classification of assets to stage 1 2 or 3 using criteria in accordance with RBI's Covid-19 regulatory circulars; We tested assets in stage 1 2 and 3 on sample basis to verify that they were allocated to the appropriate stage.
(b) Measurement of individual borrowers' provisions including Covid-19 impact assessment of multiple economic scenarios; For exposure determined to be individually impaired we tested a samples of loans and advances and examined Management's estimate of future cash flows assessed their reasonableness and checked the resultant provision calculations.

Information other than the financial statements and auditor's report thereon

• The Company's board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sReport including Annexure to Board's Report Business Responsibility Report but does notinclude the financial statements and our auditors 'report thereon.

• Our opinion on the Standalone Financial Statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

• In connection with our audit of the financial statements our responsibility isto read the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.

• If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's responsibility for the financial statements

The Company's board of directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the accounting standards specified under section 133 of the Act. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of 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 adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany'sabilitytocontinueasagoingconcerndisclosingasapplicablemattersrelated to goingconcern and using the going concern basis of accounting unless management either intendsto liquidate the Company or to cease operations or has no realistic alternative but to doso.

The boards of directors are also responsible for overseeing the Company's financialreporting process.

Auditors' 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 judgment andmaintain professional skepticism throughout the audit. We also

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the over ride 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 control.

• 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.

Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in (i) planning the scope of ouraudit work and in evaluating the results of our work; and (ii) to evaluate the effect ofany identified misstatements in the Standalone Financial Statements.

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 withthose charged with governance we determine those matters that were of most significancein the audit of the financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely are circumstances; wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits 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 of India in terms of sub-section (11) of section 143 ofthe Companies Act 2013 we give in the Annexure "A" a statement on the mattersspecified 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 explanations which to the bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account

d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e. On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2020 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 ourseparate Report in "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. Except point no 3 mentioned in Emphasis of Matter the Company does not have anyother pending litigation which would impact its financial position.

ii. The company has made provision as on 31/03/2020 as required under applicable law orAccounting standards for material foreseeable losses if any on long term contracts. Thecompany did not have any long term derivative contracts as on 31/03/2020.

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

For Jain Doshi & Co.
Chartered Accountants
Firm Registration No. : 007365C
(Rakesh Kumar Jain)
Place : Indore Partner
Date : 31/08/2020 Membership No. : 075938
UDIN: 20075938AAAAU5962

"ANNEXURE-A" TO THE AUDITORS' REPORT OF Ranjit Securities Limited

The Annexure referred to in our independent Auditors Report to the members of theCompany on the standalone financial statements for the year ended 31st March 2020 wereport that :

(i). (a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) These fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification;

(c) The title deed of one immovable property (Plot) is yet to be registered in the nameof the company for which advance is given of Rs. 1619055/- by the company. Except thistitle deeds of other immovable properties are held in the name of the company.

(ii) The company is finance and Investment Company hence having regards to the natureof the business of the company the Clause (a) (b) & (c) of paragraph (ii) of theorder is not applicable to the company.

(iii) The Company has not granted any other loans secured or unsecured to CompaniesFirms Limited Liability Partnerships or other parties covered in the register maintainedunder section 189 of the Companies Act 2013 ('the Act').

(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 loans investments guarantees and security during the year.

(v) The company has not accepted deposits Hence the directives issued by the ReserveBank of India and the provisions of sections 73 to 76 or other relevant provisions of theCompanies Act 2013 and the rules framed there under is not applicable to the company.

(vi) No order has been passed by Company Law Board or National Company Law Tribunal orReserve Bank of India or any court or any other tribunal for compliance by the company.However A case had been filed before CJM Gwalior by the Registrar of the Companies M.P.against the company and its directors under section 295 (4) & (5) 211 372 (8) 383(1A) & 209A of Companies Act 1956 which is still not concluded.

(vii) Maintenance of cost records has been not been specified by the Central Governmentunder subsection (1) of section 148 of the Companies Act 2013.

(viii)(a) According to the records of the Company The company is regular in depositingundisputed statutory dues including provident fund employees' state insuranceincome-tax sales-tax service tax duty of customs duty of excise value added tax cessand any other statutory dues to the appropriate authorities to the extent payable by thecompany. However

Name of the statute Nature of dues Period to which the amount relates Amount due
Income Tax Department Short payment of tax AY 2012-13 20462/-
Income Tax Department On account of short payment late filing fee and interest on late payment FY 2013-14 2210/-
Income Tax Department On account of short payment late filing fee and interest on late payment FY 2014-15 11960/-
Income Tax Department On account of short payment late filing fee and interest on late payment FY 2015-16 1940/-
Income Tax Department On account payment late and interest payment of short filing fee on late FY 2016-17 750/-
Income Tax Department On account payment late and interest payment of short filing fee on late FY 2018-19 110/-

(b) There was no dispute for dues of income tax or sales tax or service tax or duty ofcustoms or duty of excise or value added tax except as under which have not been depositedon account of dispute :

Name of the statue Nature of dues Amount due Period for which amount relates
Commercial Tax Liability Commercial Tax 231104/- 2001-02

(ix) The company has not taken any loans or borrowing from a financial institutionbank Government and has no dues to debenture holders.

(x) No Moneys were raised by way of initial public offer or further public offer(including debt instruments) and term loans by the company during the financial year ended31/03/2020.

(xi) No Fraud by the company or No fraud on the Company by its officers or employeesneither has been noticed by us nor reported to us during the year.

(xii) During the financial year managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act.

(xiii) In our opinion and according to the information and explanations given to usClause (xii) of the order relating to Nidhi Companies is not applicable to the company.

(xiv) All transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements as required by the applicable accounting standards.

(xv) The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

(xvi) The company has not entered into any non-cash transactions with directors orpersons connected with him;

(xvii) Being a Non Banking Finance Company. The company is duly registered undersection 45-IA of the Reserve Bank of India Act 1934.

For Jain Doshi & Co.
Firm Reg. No.: 007365C
Chartered Accountants
Place: Indore
Date: 31/08/2020 (Rakesh Kumar Jain)
Partner
Membership No.: 075938

Annexure - B to the 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 RanjitSecurities Limited ("the Company") as at March 31 2020 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's responsibility for internal financial controls

The board of directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business 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.

Auditors' responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the standards on auditing prescribed under Section 143 (10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. 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 were established and maintained and if suchcontrols 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 judgment including the assessment of the risks ofmaterial misstatement in 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 control 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 (i) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (ii) 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 authorisations ofmanagement and directors of the company; and (iii) 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.

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 of 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 and according to the information and explanations given to us theCompany has in all material respects an adequate internal financial control system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at March 31 2020 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.

For Jain Doshi & Co.
Firm Reg. No.: 007365C
Chartered Accountants
Place: Indore
Date: 31/08/2020 (Rakesh Kumar Jain)
Partner
Memb No. 075938