I have audited the accompanying financial statements of R. R.
Securities Limited ("the Com- pany") which comprise the Balance
Sheet as at March 31, 2014, and the Statement of Profit and Loss and
the Cash Flow Statement for the year ended on that date, and a summary
of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements :
Management is responsible for the preparation of these financial
statements that gives a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September
2013 of the Ministry of Corpo- rate Affairs in respect of section 133
of the Companies Act, 2013.This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that gives a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility :
My responsibility is to express an opinion on these financial
statements based on my audit. I conducted my audit in accordance with
the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that I comply with
ethical require- ments and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circum- stances, but not for the
purpose of expressing an opinion on the effectiveness of Company's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and
appropriate to provide a basis for my audit opinion.
Opinion :
In my opinion and to the best of my information and according to the
explanations given to me, the aforesaid financial statements gives the
information required by the Act in the manner so required and gives a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
(b) in the case of the Statement of Profit and Loss, of the profit for
the period ended on that date; and
(c) in the case of the Cash 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, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, I gives in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act, I report that:
a) I have obtained all the information and explanations which to the
best of my 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 the Company so far as it appears from my examination of those
books;
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow State- ment dealt with by this Report are in agreement with the
books of account;
d) In my opinion, the Balance Sheet and the Statement of Profit and
Loss and the Cash Flow Statement dealt with this Report comply with the
Accounting Stan- dards notified under the Companies Act, 1956 read with
the General Circular 15/ 2013 dated 13 September 2013 of the Ministry
of Corporate Affairs in respect of section 133 of the Companies Act,
2013.;
e) On the basis of written representations received from the directors,
as on 31st March 2014, and taken on record by the Board of Directors, I
report that none of the director is disqualified as on 31st March 2014
from being apointed as a director in terms of clause (g) of sub-section
(1) of section 274 of the Companies Act. 1956.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT (Referred to in paragraph 1
under the heading of "Report on Other Legal and Regulatory
Requirements" of my report of even date)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular programme of verification which,
in my opinion, is reasonable having regard to the size of the company
and the nature of its assets. No material discrepancies were noticed
on such verification.
(c) There has not been any substantial disposal of fixed assets during
the year.
(ii) (a) The inventory has been physically verified during the year by
management. In my opinion, the frequency of verification is reasonable.
(b) In my opinion and according to the information and explanation
given to me the procedures of physical verification of stocks followed
by the management are reasonable and adequate in relation to the size
of the company and nature of its business.
(c) In my opinion and according to the information and explanation
given to me, The Company has maintained proper records of its inventory
and discrepancies no- ticed on verification between the physical
verification have been properly dealt with in the books of account of
the Company.
(iii) (a) The Company had granted unsecured loans to one parties
covered in the regis- ter maintained under section 301 of the Companies
Act, 1956. The maximum balance outstanding during the year was Rs.
31,148/- and the year-end balance of loans granted to all such company
and party was Rs. 31,148/-.
(b) In my opinion and according to the information and explanations
given to me, the terms and conditions on which loans have been granted
to companies listed in the register maintained under section 301 of the
Companies Act,1956 are not prima facie, prejudicial to the interest of
the company.
(c) The company and party is regular in repaying the principal amounts
as stipulated and has been regular in the payment of interest.
(d) There is no overdue amount of loans granted to company and listed
in the regis- ter maintained u/s.301 of the Companies Act, 1956.
(e) The company has taken unsecured loan from parties covered in the
register Maintained under section 301 of the Companies Act, 1956. The
maximum bal- ance outstanding during the year was Rs. 2,45,78,008/- and
the year-end bal- ance of loans granted to all such parties and party
was Rs. 21,282,009/-.
(f) The repayment to parties are regularly been made in respect of the
principal amounts and the payment of interest.
(g) There is no overdue amount of loans taken to the parties listed in
the register maintained u/s.301 of the Companies Act, 1956.
(iv) In my opinion and according to the information and explanations
given to me, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory, fixed assets and for sale of
goods.
(v) (a) In my opinion, and according to the information and
explanations given to me, the particulars of contracts or arrangements
referred to in section 301 of the Act, have been entered in the
Register required to be maintained under that section :
(b) In my opinion and according to the information and explanation
given to me, the transaction made in pursuance of such contracts or
arrangements have been at prices, which are reasonable having regard to
prevailing market prices at the relevant time.
(v) In my opinion and according to the information and explanations
given to me, the company has not accepted any deposit from the public
during the period covered by my audit report and hence the provisions
of Section 58A, 58AA or any other relevant provi- sions of the
Companies Act, 1956 and companies (Acceptance of Deposits) Rules, 1975.
According to the information and explanations to me, no Order has been
passed by the Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any Court or any other Tribunal in this
respect.
(vii) In my opinion, the Company has an internal Audit system
commensurate with the size and nature of its business.
(viiii) According to information and explanations given to me the
Central Government has not prescribed for the maintenance of cost
records under section 209(1)(d) of the Compa- nies Act, 1956.
(ix) (a) According to the records of the Company, the Company is
generally regular in depositing with appropriate authorities undisputed
statutory dues including in- vestor education protection fund,
income-tax, wealth-tax, service tax, cess and other material statutory
dues applicable to it. According to the information and explanations
given to me, no undisputed amounts payable in respect of investor
education protection fund, Income-tax , Wealth-tax, service tax, and
cess were outstanding, as at 31st March,2014 for a period of more than
six months from the date they become payable.
(b) According to the information and explanations given to me, there
are no dues of Income Tax, wealth tax service tax, and cess, which have
not been deposited on account of any dispute.
(x) The Company doesn't have accumulated losses. The Company has not
incurred cash losses during the financial year covered by my audit as
well as in the immediately preceding year.
(xi) Based on my audit procedure and on the information and
explanations given by the according by the management, the Company has
not defaulted in repayment of dues to any Financial Institution or
Bank. The Company has not issued any Debenture.
(xii) According to my audit procedure and on the basis information and
explanations given by the management, the Company has not granted any
loan on the basis of security by way of pledge of shares, debentures
and other securities.
(xiii) The company is not a chit fund or a nidhi mutual benefit
fund/society. Therefore, the provisions of this clause of the Companies
(Auditor's Report) Order, 2003 are not applicable to the company.
(xiv) The Company is dealing in or trading in shares, securities,
debentures and other investments. As per the information and
explanation given to me and in my opinion proper records have been
maintained of the transactions and contracts and timely entries have
been made therein. However some of the shares, securities, debentures
and other securities have been held by the Company in the name of
Directors in pursu- ance of resolutions passed by the Company.
(xv) In my opinion and according to the information and explanations
given to me, the Company has given guarantees to bank for loans taken
by one Company in which directors are interested and mortgaged the
properties of Company. As properties are mortgaged and no any counter
guarantee has been obtained from the said Company it may affect
prejudice the interest of Company in case of default made by Company on
behalf of whom guarantee is given by Company to banks.
(xvi) According to my audit procedure and on the basis information and
explanations given by the management, the Company has not obtained any
Term loan during the year under review.
(xvii) Based on the information and explanations given to me and on an
overall examination of the Balance sheet of the company, I report that
no significant funds raised on short- term basis have been used for
long-term investment by the Company.
(xviii) The company has not made any preferential allotment of shares
to any parties and companies covered under the register maintained
u/s.301 of the Act.
(xix) During the period covered under audit the company has not made
any issue of any debentures.
(xx) The Company has not raised any money by way of public issue.
Therefore the question of creation of securities or charge in respect
thereof does not arise.
(xxi) To the best of my knowledge and belief and according information
and explanations given to me, no fraud on or by the Company has been
noticed or reported during the course of my audit.
For, Nirav A Patel & Associates
Chartered Accountants
Nirav Patel
Place : Ahmedabad Proprietor
Date : 30/05/2014 M No : 151282
FRN NO 135076W |