Auditor Report of S & T Corporation Ltd.
Mar 31, 2016
To ,
The Members of S AND T CORPORATION LIMITED Report on the Financial Statements
We have audited the accompanying financial statements of S AND T CORPORATION LIMITED ("the Company") which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, Cash Flow Statement for the year then ended and a summary 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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect to 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 principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. 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 the 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 financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures those are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, 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 on the financial statements
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid 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, of the state of affairs of the Company as at March 31, 2016, and its Profit/Loss and its Cash Flow for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the financial statements:
Note No. 3 to the financial statement which indicates that the managerial remuneration is paid as per provisions of section 197 read with Schedule V with the Companies Act;
Note No. 4 to the financial statements which indicate that the share of profit for the year ended 31/03/2016 from the firms in which the company is partner is not accounted for as the books of accounts of the firms are not finalized & the effects on the financial statements can not been determined.
Note No 9 to the financial statements which indicates that the company has been accounting for payments of gratuity & leave encashment as and when it is actually paid.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 it appears from our examination of those books;
c. the Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account
d. In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors as on March 31, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
With respect to the other matters to be included in the Auditor''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 the explanations given to us:
- The Company does not have any pending litigations which would impact its financial position.
- The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
- There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
"ANNEXURE A" TO THE INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph 1 under the heading ''Report on Other Legal & Regulatory Requirement'' of our report of even date to the financial statements of the Company for the year ended March 31, 2016:
1. Fixed Assets
a. According to information & explanations given to us, the company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b. According to information & explanations given to us, all the assets have not been physically verified by the management during the year but there is a regular program of verification which, in our 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. According to information & explanations given to us the title deeds of immovable properties are held in the name of the company.
2. Inventory
a. According to information & explanations given to us, the inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable.
b. According to information & explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business.
c. In our opinion, according to information & explanations given to us, the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.
3. Loans granted by the Company
a. According to information & explanations given to us, the following are the particulars of loans granted by the company to companies, firms and other parties covered in the register maintained under section 189 of the Companies act, 2013:
|
S. N. |
Name of Party |
Relationship with Company |
Amount (in R) |
Year End Balance (in R) |
|
1 |
Rajyog Enterprise - loan Account |
Partner in Partnership Firm |
5,87,09,136.77 |
2,96,57,068.67 |
|
2 |
Rajyog Construction - loan Account |
Partner in Partnership Firm |
1,17,55,667.55 |
8,28,591.64 |
|
3 |
Rajyog Realtors - loan Account |
Partner in Partnership Firm |
5,53,32,500/- |
5,53,32,500/- |
b. In our opinion, the rate of interest and other terms and conditions on which loans have been granted to companies, firm or other parties listed in the registers maintained under Section 189 of the Companies Act, 2013 are not, prima facie, prejudicial to the interest of the company.
c. According to information & explanations given to us Payment/Receipt of principal amount and interest on loans granted are regular & there is no overdue principal or interest on such loans.
4. Loans, Investments, Guarantees & Security
In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans, investments, guarantees, and security.
5. Deposits from the public
According to the information and explanation given to us, company has not accepted deposits from the public & in view of the same the provisions of section 73 to 76 of the Companies Act, 2013 and the rules framed there under is not applicable to the company.
6. Cost Records
According to information & explanations given to us, the Central Government has not prescribed the maintenance of cost records under section 148(1) of the Companies Act, 2013 in respect of the activities carried on by the company.
7. Statutory Dues
a. According to information and explanations given to us and on the basis of our examination of the books of account, and records, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax, Cess and any other statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the above were in arrears as at March 31, 2016 for a period of more than six months from the date on when they become payable.
b. According to the information and explanation given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax outstanding on account of any dispute
8. Default in Financial dues
In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks. The Company has not taken any loan either from financial institutions or from the government and has not issued any debentures.
9. Moneys raised by way of initial public offer or further public offer
Based upon the audit procedures performed and the information and explanations given by the management, the company has not raised moneys by way of initial public offer or further public offer including debt instruments and term Loans during the year. Accordingly, the provisions of clause of the Order are not applicable to the Company and hence not commented upon.
10. Frauds
Based upon the audit procedures performed and the information and explanations given by the management, we report that no fraud by the Company or on the company by its officers or employees has been noticed or reported during the year.
11. Managerial Remuneration
The Company has paid Managerial remuneration as under
|
Name |
Remuneration -Rs. |
|
|
Ms. Trishna Savai |
Additional Director |
2,40,000/- |
|
Mr. Dhaval Savai |
Additional Director |
2,40,000/- |
The managerial remuneration paid as above do not comply the provisions of section197 read with Schedule V with the Companies Act;
12. Nidhi Company
In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause of the Order are not applicable to the Company.
13. Related Party Transactions
In our opinion, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
14. Preferential Allotment or Private Placement
Based upon the audit procedures performed and the information and explanations given by the management, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review. Accordingly, the provisions of clause of the Order are not applicable to the Company and hence not commented upon.
15. Non Cash Transaction
Based upon the audit procedures performed and the information and explanations given by the management, the company has not entered into any non-cash transactions with directors or persons connected with him. Accordingly, the provisions of clause of the Order are not applicable to the Company and hence not commented upon.
16. Registration with RBI
In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause of the Order are not applicable to the Company and hence not commented upon.
"ANNEXURE B" TO THE INDEPENDENT AUDITOR''S REPORT
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of S AND T CORPORATION LIMITED ("the Company") as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016 based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For M/S. Pankaj Dalal & Associates
Chartered Accountants
FRN : 107347W
CA. Pankaj Dalal
Mumbai, Partner
Date : 16th August, 2016 Membership No. 041233
Mar 31, 2015
We have audited the accompanying financial statements of S & T
CORPORATION LIMITED ("the Company"), which comprise the Balance Sheet
as at 31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of the 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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to 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 principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. 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 the 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 financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid 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, of the state of affairs of the Company as
at 31st March, 2015, and its profit/Loss and its cash flows for the
year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the
financial statements:
Note No.4 to the financial statements which indicate that the share of
profit from the firms in which the company is partner is not accounted
for as the books of accounts of the firms are not finalized & the
effects on the financial statements have not been determined
Note No 9 to the financial statements which indicates that the company
has been accounting for payments of gratuity & leave encashment as and
when it is actually paid.
Our opinion is not modified in respect of this matter.
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 (11) of sec 143 of the companies Act, 2013, we give in the
Annexure a statement on the matters 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 explanations
which to the best of 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 the Company 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 Statement dealt with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f. With respect to the other matters to be included in the Auditor'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 the explanations given to us:
i. The Company does not have any pending litigations which would
impact its financial position.
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses.
iii. There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
(Referred to in paragraph 1 under 'Report on other Legal and Regulatory
Requirements' section of our report of even date of S & T Corporation
Ltd for the year ended March 31, 2015.)
1. Fixed Assets
a. According to information & explanations given to us, the company
has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b. According to information & explanations given to us, all the assets
have not been physically verified by the management during the year but
there is a regular program of verification which, in our 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.
2. Inventory
a. According to information & explanations given to us, the inventory
has been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
b. According to information & explanations given to us, the procedures
of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the company and the
nature of its business.
c. In our opinion, according to information & explanations given to
us, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
3. Loans granted by the Company
a. According to information & explanations given to us, the following
are the particulars of loans granted by the company to companies, firms
and other parties covered in the register maintained under section 189
of the Companies act, 2013:
S.
N. Name of Party Relationship with
Company Amount
(in R) Year End
Balance
(in R)
1 Rajyog Enterprise
- loan Partner in
Partnership Firm 5,73,930/- 5,73,71,930/-
Account
2 Rajyog Construction
- loan Partner in
Partnership Firm 1,27,07,371/- 1,17,07,371/-
Account
3 Rajyog Realtors
- loan Partner in
Partnership Firm 5,18,25,767/- 2,92,70,000/-
Account
c. In our opinion, the rate of interest and other terms and conditions
on which loans have been granted to companies, firm or other parties
listed in the registers maintained under Section 189 of the Companies
Act, 2013 are not, prima facie, prejudicial to the interest of the
company.
d. Payment/Receipt of principal amount and interest on loans take/
granted are also regular.
4. Internal Control over purchase of inventory and fixed assets and
for sale of goods
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
controls.
5. Deposits from the public
According to the information and explanation given to us, company has
not accepted deposits from the public & in view of the same the
provisions of section 73 to 76 of the Companies Act, 2013 and the rules
framed thereunder is not applicable to the company.
6. Cost Records
According to information & explanations given to us, the Central
Government has not prescribed the maintenance of cost records under
section 148(1) of the Companies Act, 2013
7. Statutory Dues
a. According to the records of the company, the company is generally
regular in depositing with appropriate authorities, undisputed
statutory dues including provident fund, investor education protection
fund, employees' state insurance, income-tax, sales-tax, wealth-tax,
custom duty, excise duty, cess and other material statutory dues
wherever it is applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding, as at 31/03/2015 for
a period of more than six months from the date they became payable.
According to the records of the company, there are no dues of sale tax,
income-tax, customs tax/wealth-tax, excise duty/cess which have not
been deposited on account of any dispute.
c. According to the information and explanations given to us, there
were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company.
8. Sick Company
In our opinion, the accumulated loss of the company is not more than
fifty percent of its net worth. The company has not incurred any cash
losses during the financial year covered by our audit & in the
immediately preceding financial year.
9. Default in Financial dues
In our opinion based on our audit procedures and on the information and
explanations given by the management, we are of the opinion that the
company has not defaulted in repayment of dues to financial
institution, bank or debenture holders in the financial year covered by
our audit.
10. Guarantees for Loans
According to information & explanations given to us, the company has
not given any guarantees for loans taken by others from banks or
financial institutions.
11. End use of Term Loans
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no term loan funds were raised by the company.
12. Frauds
Based upon the audit procedures performed by us, to the best of our
knowledge and belief according to information and explanations given by
the management, no fraud on, or by the company, has been noticed or
reported during the year.
For M/S. Pankaj Dalal & Associates
Chartered Accountants
FRN : 107347W
CA. Pankaj Dalal
Mumbai, Proprietor
Date : 28th May, 2015 Membership No. 041233
Mar 31, 2014
We have audited the accompanying financial statements of S & T
CORPORATION LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31, 2014,and 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.
Management''s Responsibility for the Financial Statements
The Company''s 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") read with
the General Circular 15/2013 dated 13 September of the Ministry of
Corporate 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 give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor''s 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 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 circumstances but not for the
purpose of expressing an opinion on the effectiveness of the 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
As explained in note No. 11, the Share of Profit from the firms for the
year under review in which the company is partner is not accounted for
as the books of accounts of the firms are not finalized & the effects
on the financial statements have not been determined.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements except for the
effects of the matter described above 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, ofthe state of affairs of the
Company as atMarch 31,2014;
(b) I n the case of the Statement Profit and Loss, of the profit for
the year ended on that date; and
(c) In the case ofthe Cash Flow Statement, ofthe 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, 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
statementon the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we reportthat:
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 read
with 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 March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act.
ANNEXURES TO THE AUDITORS REPORT LTD
REFERRED TO IN OUR REPORT OF EVEN DATE OF S & T CORPORATION LTD
1. Fixed Assets
a. According to information & explanations given to us, the company
has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b. According to information & explanations given to us, all the assets
have not been physically verified by the management during the year but
there is a regular program of verification which, in our 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. Substantial part of fixed assets has not been disposed of during
the year which would affect its going concern.
2. Inventory
a. According to information & explanations given to us, the inventory
has been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
b. Accordingto information & explanations given to us, the procedures
of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the company and the
nature of its business.
c. According to information & explanations given to us, we are of the
opinion that the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material.
3. Loans taken / granted by the Company
a. According to information & explanations given to us, the company
has not taken any loans from companies, firm and other parties covered
in the Register maintained under Section 301 of the Companies Act,
1956.
b. The following are the particulars of loans granted by the company
to companies, firms and other parties covered in the register
maintained under section 301 of the Companies act, 1956:
S.N. Name of Party Relationship with Company Amount (in Rs.)
1 Rajyog Enterprise - loan Partner in Partnership Firm
Account
2 Rajyog Enterprise - Partners Partner in Partnership Firm 27,000/-
Contribution Towards Capital
3 Rajyog Construction - loan Partner in Partnership Firm
Account
4 Rajyog Construction - Partner in Partnership Firm - 2,200/
Partners Contribution
Towards Capital ''
5 Rajyog Realtors - loan Partner in Partnership Firm
Account
6 Rajyog Realtors - Contri Partner in Partnership Firm 37,500/-
bution Towards Capital ''
Name of Party Year End Balance (in Rs)
Rajyog Enterprise - loan Account 4,13,84,106/-
Rajyog Enterprise - Partners Contribution
Towards Capital 27,000/-
Rajyog Construction - loan Account 1,27,07,371/-
Rajyog Construction - Partners Contribution
Towards Capital 2,200/-
Rajyog Realtors - loan Account 5,03,00,000/-
Rajyog Realtors - Contribution Towards Capital 37,500/-
c. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firm or other
parties listed in the registers maintained under Section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest
of the company.
d. Payment/Receipt of principal amount and interest on loans
take/granted are also regular.
4. Internal Control over purchase of inventory and fixed assets and
for sale of goods In our opinion and according to the information and
explanations given to us, there are adequate internal control
procedures commensurate with the size of the company and the nature of
its business with regard to purchases of inventory, fixed assets and
with regard to the sale of goods and services. During the course of
our audit, we have not observed any continuing failure to correct major
weakness in internal controls.
5. Transactions with parties listed u/s 301 of the Companies Act, 1956
a. Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of five lakhs rupees in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. Deposits from the public
According to the information and explanation given to us, company has
not accepted deposits from the public & in view of the same the
provisions of section 58A 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975, are not applicable to
the company.
7. Internal Audit System
According to information & explanations given to us, in our opinion,
the company has an internal audit system commensurate with the size and
nature of its business.
8. Cost Records
According to information & explanations given to us, the Central
Government has not prescribed the maintenance of cost records under
section 209(1) (d) of the Companies Act, 1956.
9. Statutory Dues
a. According to the records of the company, the company is generally
regular in depositing with appropriate authorities, undisputed
statutory dues including provident fund, investor education protection
fund, employees'' state insurance, income-tax, sales-tax, wealth-tax,
custom duty, excise duty, cess and other material statutory dues
wherever it is applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding, as at 31 /03/2014
for a period of more than six months from the date they became payable.
c. According to the records of the company, there are no dues of sale
tax, income-tax, customs tax/wealth-tax, excise duty/cess which have
not been deposited on account of any dispute.
10. Sick Company
In our opinion, the accumulated loss of the company is not more than
fifty percent of its net worth. The company has not incurred any cash
losses during the financial year covered by our audit & in the
immediately preceding financial year.
11. Default in Financial dues
Based on our audit procedures and on the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institution, bank or
debenture holders in the financial year covered by our audit.
12. Documents in respect of loans granted
According to information & explanations given to us & based on our
examination of documents and records, we are of the opinion that the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. Chitfunds/Nidhi/Mutual benefit fund/society
In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Reports) Order, 2003 are not applicable to the
company.
14. Companies dealing/trading of shares and other instruments
Based on our examination of the records and evaluation of the related
internal controls, in our opinion the company is not dealing/trading in
shares & other securities in the financial year covered by our audit.
15. Guarantees for Loans
According to information & explanations given to us, the company has
not given any guarantees for loans taken by others from banks or
financial institutions.
16. End use of Term Loans
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no term loan funds were raised by the company.
17. Short-term & Long-term Investment
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long- term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
18. Preferential Allotment
According to the information and explanations given to us, the company
has not made any preferential allotment of shares of parties and
companies covered in the register maintained under section 301 of the
Act, other than 42,00,870 equity shares of Rs. 10/- each were allotted to
the shareholders of Shubh Management Consultants Pvt. Ltd. On
28/05/2012 Without payment being received in cash pursuant to scheme of
amalgamation approved by high court Bombay.
19. Debentures
According to the information and explanation given to us, during the
period covered by our audit report, the company has not issued any
debentures.
20. End use of Public Issues
According to the information and explanation given to us, during the
period covered by our audit report, the company has not raised any
money byway of public issue.
21. Frauds
Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported duringthe course of our audit.
For M/S. Pankaj Dalai & Associates
Chartered Accountants
FRN : 107347W
CA. Pankaj Dalai
Mumbai, Proprietor
Date : 11 th August, 2014 Membership No. 41233
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of S & T
CORPORATION LIMITED ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, and 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.
Management''s 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.
Auditor''s 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 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 circumstances. 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.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
As explained in note No. 11 The Share of Profit from the firms for the
year under review in which the company is partner is not accounted for
as the books of accounts of the firms are not finalized & the effects
on the financial statements have not been determined.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements except for the
effects of the matter described above 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 ofaffairs of the
Company as at March 31,2013;
(b) In the case of the Statement Profit and Loss, of the profit/ 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 (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, 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. Op 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.
f. Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURES TO THE AUDITORS REPORT
REFERRED TO IN OUR REPORT OF EVEN DATE OF S & T CORPORATION LIMITED
1. Fixed Assets
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. According to information & explanations given to us All the assets
have not been physically verified by the management during the year but
there is a regular program of verification which, in our 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. Substantial part of fixed assets has not been disposed of during
the year which would affect its going concern.
2. Inventory
a. According to information & explanations given to us the inventory
has been physically verified during the year by the management. In our
opinion, the frequency of verification is reasonable.
b. According to information & explanations given to us the procedures
of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the company and the
nature of its business.
c. According to information & explanations given to us we are of the
opinion that the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material.
3. Loans taken / granted by the Com pany
a. According to information & explanations given to us The Company has
not taken any loans from companies, firm and other parties covered in
the Register maintained under Section 301 of the Companies Act, 1956.
b. The following are the particulars of loans granted by the company
to companies, firms and other parties covered in the register
maintained under section 301 of the companies act, 1956:
1 Rajyog Enterprise - loan Partner in Partnership Firm 5 84 61766/- 3
28 09 106/- Account
2 Rajyog Enterprise - Partners Partner in Partnership Firm 27,000/-
27,000/- Contribution Towards Capital
3 Rajyog Construction - loan Partner in Partnership Firm 2,35,44,880/-
Account iii
4 Rajyog Construction - Partners Partner in Partnership Firm ,
Contribution Towards Capital '' ''
5 Rajyog Realtors - loan Partner in Partnership Firm 2 4,46,75,000/-
Account
6 Rajyog Realtors - Contribution Partner in Partnership Firm ,7 qnn/ ,
Towards Capital
c. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firm or other
parties listed in the registers maintained under Section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest
of the company.
d. Payment/Receipt of principal amountandintereston loans take/granted
are also regular.
4. Internal Control over purchase of inventory and fixed assets and
for sale of goods
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods and services. During the course of our audit, we have not
observed any continuing failure to correct major weakness in internal
controls.
5. Transactions with parties listed u/s 301 of the Companies Act, 1956
a. Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of five lakhs rupees in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. Deposits from the public
According to the information and explanation given to us company has
not accepted deposits from the public & in view of the same the
provisions of section 58A, 58AA of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975, are not applicable to
the company.
7. Internal Audit System
According to information & explanations given to us, in our opinion,
the company has an internal audit system commensurate with the size and
nature of its business.
8. Cost Records
According to information & explanations given to us, The Central
Government has not prescribed the maintenance of cost records under
section 209(1) (d) of the Companies Act, 1956
9. Statutory Dues
a. According to the records of the company, the company is regular in
depositing with appropriate authorities, undisputed statutory dues
including provident fund, investor education protection fund,
employees'' state insurance, income-tax, sales-tax, wealth-tax, custom
duty, excised-duty, cess and other material statutory dues wherever it
is applicable to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding, as at 31/03/2013 for
a period of more than six months from the date they became payable.
c. According to the records of the company, there are no dues of sale
tax, income-tax, customs tax/wealth- tax, excise duty/cess which have
not been deposited on account of any dispute.
10. Sick Company
In our opinion, the accumulated loss of the company is not more than
fifty percent of its net worth. The company has not incurred any cash
losses during the financial year covered by our audit & in the
immediately precedingfinancial year.
11. Default in Financial dues
Based on our audit procedures and on the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institution, bank or
debenture holders in the financial year covered by our audit.
12. Documents in respect of loans granted
Accordingto information & explanations given to us & based on our
examination of documents and records, we are of the opinion that the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. Chit funds/Nidhi/Mutual benefit fund/society
In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Reports) Order, 2003 are not applicable to the
company.
14. Companies dealing/trading of shares and other instruments
Based on our examination of the records and evaluation of the related
internal controls, in our opinion the company is not dealing/trading in
shares & other securities in the financial year covered by our audit.
15. Guarantees for Loans
According to information & explanations given to us the company has not
given any guarantees for loans taken by others from banks or financial
institutions.
16. End use of Term Loans
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no term loan funds were raised by the company.
17. Short-term & Long-term Investment
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
18. Preferential Allotment
According to the information and explanations given to us, the company
has not made any preferential allotment of shares of parties and
companies covered in the register maintained under section 301 of the
Act, other than 42,00,870 equity shares of Rs.10/- each were allotted
to the shareholders of Shubh Management Consultants Pvt. Ltd. Without
payment being received in cash pursuant to scheme of amalgamation
approved by high court Bombay.
19. Debentures
Accordingto the information and explanation given to us, during the
period covered by our audit report, the company has not issued any
debentures.
20. End use of Public Issues
According to the information and explanation given to us, during the
period covered by our audit report, the company has not raised any
money byway of public issue.
21. Frauds
Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For M/S. Pankaj Dalai & Associates
Chartered Accountants
FRN : 107347W
CA. Pankaj Dalai
Mumbai, Proprietor
Date : 12th August, 2013 Membership No. 41233
Mar 31, 2012
We have audited the attached Balance Sheet of S & T CORPORATION LTD. As
at 31 st March, 2012 and also the Profit and Loss Account for the year
ended on that date annexed thereto. These financial statements are the
responsibility of the Company's management Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those Standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, 4s well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
As required by the Companies (Auditor's Report) Order, 2003. Issued by
the Central Government in terms of sub- section (4A) of section 227 of
the Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order.
Further to our comments in the Annexure referred to above, we report
that:
i. We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii. 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;
iii. The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
iv. In our opinion, the Balance Sheet and Profit and Loss Account
dealt with by this report comply with the accounting standards referred
to in sub-section (3C) of section 211 of the Companies Act, 1956;
v. In our opinion, there was no cess payable under section 441A
vi. On the basis of written representations received from the
directors, as on 31st March, 2012, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31 st March 2012 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 2 74 of the Companies Act, 1956;
In our opinion and to the best of our information and according to the
explanations given to us, subject to the said accounts, read together
with notes thereon, give the information required by the Companies Act,
1956 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 31st March, 2012; and
b. in the case of Profit and Loss Account of the Profit for the year
ended on that date.
Re: S & T CORPRATION LTD.
Annexure Referred to in paragraph 3 of our report of even date.
1. Fixed Assets
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 our 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.
2. Inventory
a. The inventory has been physically verified during the year by the
management. In our opinion, the frequency of verification is
reasonable.
b. The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c. On the basis of our examination of the records of inventory, we are
of the opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
3. Loans taken / granted by the Company
a. The company has not taken any loans from companies, firm and other
parties covered in the Register maintained under Section 301 of the
Companies Act, 1956.
b. The following are the particulars of loans granted by the company
to companies, firms and other parties covered in the register
maintained under section 301 of the companies act, 1956:
S.
N. Name of
Party Relationship
with Company Amount
(in Rs.) Year End
Balance (in Rs.)
1 Victory
Realtors -
loan Partnership Firm 12,67,533/- 8,71,386/-
Account
2 Victory
Realtors -
Partners Partnership Firm 12,000/- Nill
Contribution
Towards Capital
3 Rajyog
Enterprise
-loan Partnership Firm 2,26,74,118/-
Account
4 Rajyog
Enterprise -
Partners Partnership Firm 27000/- 27000/-
Contribution
Towards
Capital
5 Rajyog
Construction-
loan Partnership Firm 5,75,67,416/- 4,45,17,416/-
Account
6 Rajyog
Construction -
Partners Partnership Firm 2,200/- 2,200/-
Contribution
Towards
Capital
b. In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firm or other
parties listed in the registers maintained under Section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest
of the company.
4. Internal Control over purchase of inventory and fixed assets and
for sale of goods
In our opinion and according to the information and explanations given
to us, there are adequate internal control procedures commensurate with
the size of the company and the nature of its business with regard to
purchases of inventory, fixed assets and with regard to the sale of
goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal controls.
5. Transactions with parties listed u/s 301 of the Companies Act, 1956
a. Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of five lakhs rupees in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
6. Deposits from the public
In our opinion, and according to the information and explanation given
to us, the provisions of section 58A of the Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975, are not applicable to
the company.
7. Internal Audit System
In our opinion, the company has an internal audit system commensurate
with the size and nature of its business.
8. Cost Records
The Central Government has not prescribed the maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956.
9. Statutory Dues
a. According to the records of the company, the company is regular in
depositing with appropriate authorities, undisputed statutory dues
including provident fund, investor education protection fund,
employees' state insurance, income-tax, sales-tax, wealth-tax, custom
duty, excised-duty, cess and other material statutory dues applicable
to it.
b. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding, as at 31/03/2012 for
a period of more than six months from the date they became payable.
c. According to the records of the company, there are no dues of sale
tax, income-tax, customs tax/wealth-tax, excise duty/cess which have
not been deposited on account of any dispute..
10. Sick Company
In our opinion, the accumulated losses of the company are not more than
fifty percent of its net worth. The company has not incurred any cash
losses during the financial year covered by our audit & in the
immediately preceding financial year.
11. Default in Financial dues
Based on our audit procedures and on the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institution, bank or
debenture holders in the financial year covered by our audit.
12. Documents in respect of loans granted
Based on our examination of documents and records, we are of the
opinion that the company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
13. Chit funds/Nidhi/Mutual benefit fund/society
In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Reports) Order, 2003 are not applicable to the
company.
14. Companies dealing/trading of shares and other instruments
Based on our examination of the records and evaluation of the related
internal controls In our opinion the company is not dealing trading in
shares & other securities in the financial year covered by our audit.
15. Guarantees for Loans
Based on our examination of documents and records, we are of the opinion
that the company has not given any guarantees for loans taken by others
from banks or financial institutions.
16. End use of Term Loans
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no term loan funds were raised by the company.
17. Short-term & Long-term Investment
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
investment. No long-term funds have been used to finance short-term
assets except permanent working capital.
18. Preferential Allotment
According to the information and explanations given to us, the company
has not made any preferential allotment of shares of parties and
companies covered in the register maintained under section 301 of the
Act
19. Debentures
According to the information and explanation given to us, during the
period covered by our audit report, the company has not issued any
debentures.
20. End use of Public Issues
According to the information and explanation given to us, during the
period covered by our audit report, the company has not raised any
money by way of public issue.
21. Frauds
Based upon the audit procedures performed and information and
explanations given by the management, we report that no fraud on or by
the company has been noticed or reported during the course of our
audit.
For M/S. Pankaj Dalai & Associates
Chartered Accountants
FRN : 107347W
CA. Pankaj Dalai
Mumbai, Proprietor
Date : 28th May, 2012 Membership No. 41233
Mar 31, 2010
1. We have audited the attached Balance Sheet of S & T CORPORATION
LTD. As at 31 st March, 2010 and also the Profit and Loss Account for
the year ended on that date annexed thereto. These financial statements
are the responsibility of the Companys management. Our responsibility
is to express an opinion on these financial statements based on our
audit
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. As required by the Companies (Auditors Report) Order, 2003. Issued
by the Central Government in terms of sub-section (4A) of section 227
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to above, we
report that:
i) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
ii) 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;
iii) The Balance Sheet and Profit and Loss Account dealt with by this
report are in agreement with the books of account;
iv) In our opinion, the Balance Sheet and Profit and Loss Account dealt
with by this report comply with the accounting standards referred to in
sub-section (3C) of section 211 of the Companies Act, 1956;
v) In our opinion, there was no cess payable under section 441A
vi) On the basis of written representations received from the
directors, as on 31 st March, 2010, and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March 2010 from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of the Companies Act, 1956;
5. In our opinion and to the best of our information and according to
the explanations given to us, subject to the accounts give the
information required by the Companies Act, 1956 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 31st March, 2010; and
b) in the case of Profitand Loss Account of the Profit for the year
ended on that date.
ANNEXURE TO THE AUDITORS REPORT
Re: S & T Corporation Limited
Annexure Referred to in paragraph 3 of our report of even date. (i)
Fixed Assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets.
(b) All the assets have not been physically verified by the management
during die year but there is a regular programme of verification which,
in our opinion, is reasonable having regard to the size of die company
and die nature of its assets. No material discrepancies were noticed on
such verification.
(ii) Inventories:
(a) The inventory has been physically verified during the year by the
management In our opinion, the frequency of verification is reasonable.
(b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
die company and the nature of its business.
(c) On the basis of our examination of die records of inventory, we are
of die opinion that the company is maintaining proper records of
inventory. The discrepancies noticed on verification between the
physical stocks and the book records were not material.
(iii) Loans taken / granted by the Company
(a) The following are the particulars of loans taken by the company
from companies, firm and other parties covered in the Register
maintained under Section 301 of the Companies Act, 1956:
S. N. Name of
Party Relationship with
Company Amount (in Rs.) Year End
Balance
(in Rs.)
1 Mr. Narayan
K. Bhatt Director 2,00,000 2,00,000
2 Mr. Ajay
S. Savai Director 20,00,000 20,00,000
3 Mr. Surendra
T. Savai
H U F Karta is
Director of
the Co. 10,00,000 10,00,000
The following are the particulars of loans granted by the company to
companies, firms and other parties covered in the register maintained
under section 301 of the companies act, 1956:
S.
No. Name of Party Relationship
with Company Amount (in Rs.) Year End
Balance
(in Rs.)
1 victory
Realtors -
loan Partnership
Firm 61,53,562/- 61,53,562/-
Account
2 victory
Realtors - Partnership
firm 12,000/- 12,000/-
Partners
contribution
towards
capital
(b) In our opinion, the rate of interest and other terms and conditions
on which loans have been taken from/granted to companies, firm or other
parties listed in the registers maintained under Section 301 of the
Companies Act, 1956 are not, prima facie, prejudicial to the interest
of the company.
(iv) Internal Control over purchase of inventory and fixed assets and
for sale of goods In our opinion and according to the information and
explanations given to us, there are adequate internal control
procedures commensurate with the size of the company and the nature of
its business with regard to purchases of inventory, fixed assets and
with regard to the sale of goods. During the course of our audit, we
have not observed any continuing failure to correct major weakness in
internal controls.
(v) Transactions with parties listed u/s 301 of the Companies Act, 1956
(a) Based on the audit procedure applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the registers maintained under section 301 and
exceeding the value of five lakhs rupees in respect of any party during
the year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
(vi) Deposits from the public
In our opinion, and according to the information and explanation given
to us, the provisions of section 58A of die Companies Act, 1956 and the
Companies (Acceptance of Deposits) Rules, 1975, are not applicable to
die company.
(vii) Internal Audit System
In our opinion, die company has an internal audit system commensurate
with the size and nature of its business.
(viii) Cost Records
The Central Government has not prescribed the maintenance of cost
records under section 209(1) (d) of the Companies Act, 1956.
(ix) Statutory Dues
(a) According to the records of the company, the company is regular in
depositing with appropriate authorities, undisputed statutory dues
including provident fund, investor education protection fund,
employees state insurance, income-tax, sales-tax, wealth-tax, custom
duty, excised-duty, cess and other material statutory dues applicable
to it
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, custom duty and excise duty were outstanding, as at 31/03/2010 for
a period of more than six months from the date they became payable.
(c) According to the records of the company, there are no dues of sale
tax, income-tax, customs tax/wealth-tax, excise duty/cess which have
not been deposited on account of any dispute.
(x) Sick Company
In our opinion, the accumulated losses of the company are more than
fifty percent of its net worth. The company has not incurred any cash
losses during the financial year covered by our audit however there was
a cash loss in the immediately preceding financial year.
(xi) Default in Financial dues
Based on our audit procedures and on the information and explanations
given by the management, we are of the opinion that the company has not
defaulted in repayment of dues to financial institution, bank or
debenture holders in the financial year covered by our audit.
(xii) Documents in respect of loans granted
Based on our examination of documents and records, we are of the
opinion that the company has not granted loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities.
(xiii) Chit funds/Nidhi/Mutual benefit fund/society
In our opinion, the company is not a chit fund or a nidhi mutual
benefit fund/society. Therefore the provisions of clause 4(xiii) of the
Companies (Auditors Reports) Order, 2003 are not applicable to the
company.
(xiv) Companies dealing/trading of shares and other instruments
Based on our examination of the records and evaluation of the related
internal controls In our opinion the company is not dealing/trading in
shares & other securities in the financial year covered by our audit
(xv) Guarantees for Loans
Based on our examination of documents and records, we are of the
opinion that the company has not given any guarantees for loans taken
by others from banks or financial institutions.
(xvi) End use of Term Loans
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no term ban funds were raised by the company.
(xvii) Short-term & Long-term Investment
According to the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
no funds raised on short-term basis have been used for long-term
investment No long-term funds have been used to finance short-term
assets except permanent working capital.
(xviii) Preferential Allotment According to the information and
explanations given to us, the company has not made any preferential
allotment of shares of parties and companies covered in the register
maintained under section 301 of the Act
(xix) Debentures According to the information and explanation given to
us, during the period covered by our audit report, the company has not
issued any debentu res.
(xx) End useof Public Issues According to the information and
explanation given to us, during the period covered by our audit report,
the company has not raised any money by way of public issue.
(xxi) Frauds Based upon the audit procedures performed and information
and explanations given by the management, we report that no fraud on or
by the company has been noticed or reported during the course of
ouraudit
For M/S. Pankaj Dalai & Associates
Chartered Accountants
CA. Pankaj Dalal
Place :Mumbai
Proprietor
Membership No. 41233
Date : 31st July, 2010
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