INDEPENDENT AUDITORS
to the Members of Ratnabali Capital Markets Limited
Report on the Financial Statements
We have audited the accompanying financial statements of RATNABALI CAPITAL MARKETS
LIMITED ("the Company"), which comprise the Balance Sheet as at March 31,
2013, the Statement of Profit and Loss and Cash Flow Statement for the year then ended,
and a summary of significant accounting policies and other explanatory information.
Managements responsibility for the financial statements
Management is responsible for the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and cash flows of the
Company in accordance with the Accounting Standards referred to in sub-section (3C) of
Section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our
audit. We conducted our audit in accordance with the Standards on Auditing issued by the
Institute of Chartered Accountants of India. Those Standards require that we comply with
ethical requirements 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 auditors
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 Companys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by the management,
as well as evaluating the overall presentation of the financial statements. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the financial statements give the information required by the Act in the
manner so required and give 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, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for the year ended on
that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
Report on other Legal and Regulatory requirements
1. As required by the Companies (Auditors Report) Order, 2003 ("the Order")
issued by the Central Government of India in terms of sub-section (4A) of Section 227 of
the Act, we give 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, we report that:
a) we have obtained all the information and explanations which 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
Company so far as appears from our examination of those books ;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with
by this Report are in agreement with the books of account;
d) in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement comply with the Accounting Standards referred to in sub-section (3C) of Section
211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors as on March 31,
2013, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
3. As required by Securities Contract (Regulation) Rules, 1957, we report that:
a) In our opinion, proper books of accounts and records as specified in Rule 15 of
Securities Contract (Regulation) Rules, 1957 have been kept so far as appears from our
examination of such books.
b) The Company has complied with the requirements of the Stock Exchange so far as they
relate to maintenance of accounts and was regular in submitting the required accounting
information to the Stock Exchange.
| For G. P. AGRAWAL & CO. |
For GOENKA SURESH & ASSOCIATES |
| Chartered Accountants |
Chartered Accountants |
| F. R. No. 302082E |
F. R. No. 313139E |
| CA. AJAY AGRAWAL |
CA. S. K. GOENKA |
| Partner |
Proprietor |
| Membership No. 1 7643 |
Membership No. 51226 |
| Kolkata, 27th April, 2013 |
|
Annexure to the Independent Auditors Report
Statement referred to in paragraph 3 of our Report of even date to the members of
RATNABALI CAPITAL MARKETS LIMITED for the year ended 31 st March, 2013.
i) a) The Company has maintained proper records showing full particulars including
quantitative details and situation of its fixed assets.
b) The fixed assets have been physically verified by the management during the year. To
the best of our knowledge, no material discrepancy was noticed on such verification.
c) During the year, the Company has not disposed off substantial part of fixed assets.
ii) a) The inventory consisting of shares and securities have been physically verified
during the year by the management at reasonable intervals.
b) In our opinion and according to the information and explanations given to us, the
procedures of physical verification of stocks consisting of shares and securities followed
by the management are reasonable and adequate in relation to the size of the Company and
nature of its business.
c) On the basis of our examination, we are of the opinion that the Company is
maintaining proper records of inventory and no discrepancies were noticed on verification
between the physical stocks and the book records.
iii) a) The Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section 301 of the Act.
b) As the Company has not granted any loans, secured or unsecured, to companies, firms
or other parties covered in the register maintained under Section 301 of the Act, clauses
(iii) (b) to (iii) (d) of paragraph 4 of the said order are not applicable to the Company.
c) The Company has not taken any loans, secured or unsecured, from companies, firms or
other parties covered in the register maintained under Section 301 of the Act.
d) As the Company has not taken any loans, secured or unsecured, from companies, firms
or other parties covered in the register maintained under Section 301 of the Act, clauses
(iii) (f) to (iii) (g) of paragraph 4 of the said order are not applicable to the Company.
iv) On the basis of information and explanations given to us, we are of the opinion
that the Company has an adequate internal control system commensurate with the size of the
Company and the nature of its business for the purchase of inventory and fixed assets and
for sale of goods and services. Further, on the basis of our examination and according to
the information and explanations given to us, we have neither come across nor have we been
informed of any instances of major weakness in the aforesaid internal control systems.
v) a) Based on the audit procedure applied by us and according to information and
explanations given to us, the particulars of contracts or arrangements, referred to in
Section 301 of the Act have been so entered in the register required to be maintained
under that Section,
b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of such contracts or arrangements have been made at prices
which are reasonable having regard to prevailing market prices at the relevant time.
vi) The Company has not accepted any deposit within the meaning of Section 58A, 58AA or
any other relevant provisions of the Act and the rules framed there under.
vii) In our opinion, the Company has an internal audit system commensurate with the
size of the Company and nature of its business.
viii) The provision regarding maintenance of cost records is not applicable to the
Company.
ix) a) According to the records, the Company is regular in depositing undisputed
statutory dues including Provident Fund, Income Tax, Wealth Tax, Service Tax, Investor
Education and Protection Fund & other statutory dues with appropriate authorities and
no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st
March, 2013 for a period of more than six months from the date they became payable. As
explained to us, the provisions of Employees State Insurance, Sales Tax, Custom Duty,
Excise Duty and Cess are not applicable to the Company,
b) The particulars of disputed statutory dues of Rs. 5.98 lakhs that have not been
deposited on account of matter pending before appropriate authority are as under:
| Name of the Statute |
Nature of dues |
Period to which it pertains |
Amount (Rs.in lakhs) |
Forum (Where the dispute is pending) |
| 1. Employees Provident Fund & Miscellaneous Provision Act, 1952 |
Provident Fund |
Accounting Year 2009-10 |
1.14 |
High Court, Kolkata |
| 2. Income Tax Act, 1961 |
Income Tax |
Assessment Year 2010-11 |
4.84 |
Deputy Commissioner of Income Tax |
x) The Company has no accumulated losses and has not incurred any cash losses in the
immediately preceding financial year. However, it has incurred cash losses during the
financial year covered by our audit.
xi) The Company has not defaulted in repayment of dues to a financial institution or
banks. The Company has not issued any debenture.
xii) The Company has not granted loans and advances on the basis of security by way of
pledge of shares, debentures or other securities.
xiii) The provisions of any Special Statute applicable to the chit fund, nidhi or
mutual benefit society are not applicable to the Company.
xiv) The Company has maintained proper records of the transactions and contracts
regarding dealings in shares, securities, debentures and other investments and timely
entries have been made thereon. The shares, securities, debentures and other investments
have been held by the Company in its own name except to the extent of exemption granted
under Section 49 of the Act.
xv) According to the records of the Company and according to the information and
explanations given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
xvi) Based on information and explanations given to us by the management, term loans
were applied for the purpose for which the loans were obtained.
xvii) According to the information and explanations given to us and on an overall
examination of the Balance Sheet and Cash Flow Statement of the Company, we report that no
funds raised on short-term basis have been used for long-term investment.
xviii) The Company has not made any preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the Act.
xix) The Company has not issued any secured debentures.
xx) The Company has not raised any money by public issue during the period covered by
our audit report.
xxi) According to the information and explanations given to us, no fraud on or by the
Company has been noticed or reported during the year.
| For G. P. AGRAWAL & CO. |
For GOENKA SURESH & ASSOCIATES |
| Chartered Accountants |
Chartered Accountants |
| F. R. No. 302082E |
F. R. No. 313139E |
| CA. AJAY AGRAWAL |
CA. S. K. GOENKA |
| Partner |
Proprietor |
| Membership No. 17643 |
Membership No. 51226 |
| Kolkata, 27th April, 2013 |
|
+91-9892691696
