The Members of S & T CORPORATION LIMITED CIN No. L51900MH1984PLC033178
We have audited the accompanying financial statements of S & T CORPORATION LIMITED("the Company") which comprise the Balance Sheet as at 31st March 2015 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary 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 Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 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 thefirms in which the company is partner is not accounted for as the books of accounts of thefirms are not finalized & the effects on the financial statements have not beendetermined
Note No 9 to the financial statements which indicates that the company has beenaccounting for payments of gratuity & leave encashment as and when it is actuallypaid.
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) Order2015 ("the order")issued by the Central Government of India in terms of sub-section (11) of sec 143 of thecompanies Act 2013 we give in the Annexure a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:
a. We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
c. The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid financial statements comply with the AccountingStandards 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 31stMarch 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2015 from being appointed as a director in terms of Section164 (2) of the Act.
f. With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.
ANNEXURES TO THE INDEPENDENT AUDITORS REPORT LTD
(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 March31 2015.)
1. Fixed Assets
a. According to information & explanations given to us the company has maintainedproper records showing full particulars including quantitative details and situation offixed assets.
b. According to information & explanations given to us all the assets have notbeen physically verified by the management during the year but there is a regular programof verification which in our opinion is reasonable having regard to the size of thecompany and the nature of its assets. No material discrepancies were noticed on suchverification.
a. According to information & explanations given to us the inventory has beenphysically verified during the year by the management. In our opinion the frequency ofverification is reasonable.
b. According to information & explanations given to us the procedures of physicalverification of inventories followed by the management are reasonable and adequate inrelation to the size of the company and the nature of its business.
c. In our opinion according to information & explanations given to us the companyis maintaining proper records of inventory. The discrepancies noticed on verificationbetween 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 theparticulars of loans granted by the company to companies firms and other parties coveredin the register maintained under section 189 of the Companies act 2013:
|S. N. ||Name of Party ||Relationship with Company ||Amount (in Rs) ||Year End Balance (in Rs) |
|1 ||Rajyog Enterprise - loan Account ||Partner in Partnership Firm ||573930/- ||57371930/- |
|2 ||Rajyog Construction - loan Account ||Partner in Partnership Firm ||12707371/- ||11707371/- |
|3 ||Rajyog Realtors - loan Account ||Partner in Partnership Firm ||51825767/- ||29270000/- |
c. In our opinion the rate of interest and other terms and conditions on which loanshave been granted to companies firm or other parties listed in the registers maintainedunder Section 189 of the Companies Act 2013 are not prima facie prejudicial to theinterest of the company.
d. Payment/Receipt of principal amount and interest on loans take/granted are alsoregular.
4. Internal Control over purchase of inventory and fixed assets and for sale ofgoods
In our opinion and according to the information and explanations given to us there areadequate internal control procedures commensurate with the size of the company and thenature of its business with regard to purchases of inventory fixed assets and with regardto the sale of goods and services. During the course of our audit we have not observedany 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 accepteddeposits from the public & in view of the same the provisions of section 73 to 76 ofthe 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 notprescribed 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 indepositing with appropriate authorities undisputed statutory dues including providentfund investor education protection fund employees' state insurance income-taxsales-tax wealth-tax custom duty excise duty cess and other material statutory dueswherever it is applicable to it.
b. According to the information and explanations given to us no undisputed amountspayable in respect of income tax wealth tax sales tax custom duty and excise duty wereoutstanding as at 31/03/2015 for a period of more than six months from the date theybecame payable. According to the records of the company there are no dues of sale taxincome-tax customs tax/wealth-tax excise duty/cess which have not been deposited onaccount of any dispute.
c. According to the information and explanations given to us there were no amountswhich were required to be transferred to the Investor Education and Protection Fund by theCompany.
8. Sick Company
In our opinion the accumulated loss of the company is not more than fifty percent ofits net worth. The company has not incurred any cash losses during the financial yearcovered 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 explanationsgiven by the management we are of the opinion that the company has not defaulted inrepayment of dues to financial institution bank or debenture holders in the financialyear covered by our audit.
10. Guarantees for Loans
According to information & explanations given to us the company has not given anyguarantees 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 examinationof the balance sheet of the company we report that no term loan funds were raised by thecompany.
Based upon the audit procedures performed by us to the best of our knowledge andbelief according to information and explanations given by the management no fraud on orby 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 |