THE MEMBERS OF
S.B & T INTERNATIONAL LIMITED
We have audited the attached Balance Sheet of S.B. & T INTERNATIONAL LIMITED(" the Company") as at 31st March 2014 the Statement of Profit & LossAccount and the Cash Flow Statement of the company for the year ended on that date annexedthereto.
Respective Responsibility Of The Management And The Auditor:
These financial statements are the responsibility of the companys management. Ourresponsibility is to express an opinion on these financial statements based on our audit.
Basis of Opinion:
We conducted our audit in accordance with auditing standards generally accepted inIndia. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatements. Anaudit includes examining on test basis evidence supporting the amounts and disclosuresin the financial statements. An audit also includes assessing the accounting principlesused and significant estimates made by management as well as evaluating the overallfinancial statement presentation. We believe that our audit provides a reasonable basisfor our opinion.
We report as under:
I. As required by the Companies (Auditors Report) Order 2003 as amended by theCompanies (Auditors Report) (Amendment) Order 2004 issued by the CentralGovernment of India in terms of Section 227 (4A) of the Companies Act 1956 (theAct) and on the basis of such checks of the books and records of the Companyas we considered appropriate and according to the information and explanation given to usby the management we enclose in the Annexure a statement on the matters specified inparagraphs 4 and 5 of the said Order.
II. Further to our comments in the Annexure referred to in paragraph I above:
a) We have obtained all the information and explanation which to the best of ourknowledge 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 theCompany so far as appears from our examination of the books.
c) The Balance Sheet Statement of Profit & Loss Account and Cash Flow Statementdealt with by this report are in agreement with the books of account.
d) In our opinion Statement of Profit & Loss Account Balance Sheet and Cash FlowStatement comply with Accounting Standards referred to in sub-section (3C) of Section 211of the Companies Act 1956 with General Circular 15/ 2013 dated 13th September 2013 ofthe Ministry of Corporate Affairs in respect of Section 133 of the Companies Act 2013 tothe extent they are applicable to the Company.
e) On the basis of written representations received from the Directors of the Companyas on 31st March 2014 and taken on record by the Board of Directors of the Company wereport that none of the Director is disqualified as on at 31st March 2014 from beingappointed as a Director in terms of clause (g) of sub-section (1) of section 274 of theAct.
1) in case of the Balance Sheet of the state of affairs of the company as at 31stMarch 2014
2) in case of Statement of Profit & Loss Account of the Loss of the company forthe year ended on that date; and
3) in case of the Cash Flow statement of the cash flows of the Company for the yearended on that date.
For M.M DUBEY & Co.
M.M.DUBEY & CO
Membership No. 30453
Date: 4th September 2014
1. We are informed that the company is maintaining proper records showing fullparticulars including quantitative details and situation of fixed assets.
2. According to the representations provided to us the company has a regular programmeof physical verification of its fixed assets over a period of three years which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. In accordance with this programme certain fixed assets were physically verifiedby the Management during the year.
3. During the year the Company has not disposed off substantial part of its fixedassets to affect going concern assumption.
4. We are informed that physical verification of inventory has been carried out by themanagement during the year. In our opinion the frequency of verification is reasonable.
5. According to the information and explanations given to us the procedure of physicalverification of inventory followed by the management is reasonable and adequate accordingto the size of the company and the nature of the business.
6. On the basis of the representation of the company we are of the opinion that theCompany is maintaining proper records of inventory.
Related party transactions:
7. According to the information and explanation given to us the company has grantedinterest free unsecured loans to two companies covered in the register maintained undersection 301 of the Act. The maximum amount involved during the year is of Rs. 3203.71lacs.
8. In our opinion the terms and condition (other than rate of interest) on which loanhave been granted by the company to the parties listed in the register maintained undersection 301 of the Act are prima facie not prejudicial to the interest of the company.
9. According to the information and explanations given to us receipt of the amount isregular.
10. In our opinion and according to the information and explanations given to us thecompany has taken reasonable steps where overdue amount is more than one lac for recoveryof the amount.
11. According to the information and explanations given to us the company has takeninterest free unsecured loans from two directors three relatives of director and one firmand loan from two companies covered in the register maintained under section 301 of theAct. The maximum amount involved during the year is aggregated to Rs. 793.44 lacs.
12. In our opinion and according to the information and explanation given to us theterms and conditions including the rate of interest for such loan is taken are not primafacie prejudicial to the interest of the company.
13. According to the information and explanations given to us the payment of theamount is regular.
Contracts or Arrangements with 301 Parties
14. According to the information and explanations given to us the transactions inwhich directors were interested as contemplated under Section 297 and sub section (6) ofsection 299 of the Act and which were required to be entered in the register maintainedunder section 301 of the said act have been so entered.
15. According to the information and explanations given to us each of thesetransactions exceeding the value of rupees five lacs in respect of any party during theyear are made at a price which are reasonable having regard to the prevailing marketprices at the relevant time.
16. An internal control procedure for the purchase of inventory and fixed assets andfor the sale of goods has improved.
17. In our opinion the company has an adequate internal audit system commensurate withits size and nature of its business.
18. In our opinion and according to the information and explanations given to us thecompany has complied with the provision of Section 58A and 58AA of the Act or any otherrelevant provisions of the Act and the NBFC (Reserve Bank) Directors 1998 / Companies(Acceptance of Deposits) Rules 1975 with regard to the deposits accepted from publicduring the earlier years. Further as informed to us no order has been passed by theCompany Law Board National Law Tribunal Reserve Bank of India or any other court orTribunal.
19. According to the information and explanations given to us the company is regularin depositing undisputed statutory dues including Provident Fund Investor Education andprotection fund employees state insurance income tax sales tax wealth tax customduty cess and other statutory dues if any applicable to it. As explained to us theprovision regarding service tax and excise duty is presently not applicable to thecompany. However undisputed amount in respect of the following dues are outstanding for aperiod of more than six months:
|Name of Statute ||Nature of the Dues ||Amount (Rs. in Lacs) ||Pending from the financial year |
|Income Tax Act ||Corporate Dividend Tax ||3.02 ||2009 10 |
|Income Tax Act ||Corporate Dividend Tax ||2.86 ||2010 11 |
|Income Tax Act ||Income Tax ||34.14 ||2009 10 |
|Income Tax Act ||Income Tax ||5.53 ||2010 11 |
|MVAT Act ||Sales Tax ||6.18 ||2011 12 |
|Maharashtra Profession Act ||Profession Tax ||1.20 ||2011 12 |
|Maharashtra Profession Act ||Profession Tax ||1.12 ||2012 - 13 |
|Maharashtra Profession Act ||Profession Tax ||1.06 ||2013 - 14 |
20. According to the information and explanations given to us there are no dues ofincome tax sales tax wealth tax service tax custom duty excise duty and cess whichhave not been deposited on account of any dispute except for the following:
|Name of Statute ||Nature of the dues and period to which it relates ||Amount (Rs. In lacs) ||Forum where dispute is pending |
|Custom Act 1962 ||2004-05 to 2008-09 ||64.24 ||Deputy Commissioner of Customs SEEPZ-SEZ |
Accumulated / Cash losses:
21. The company does not have any accumulated losses at the year end but has incurredcash losses during the financial year Rs. 335.76 lacs. Further during the previous yearthe company has not incurred any cash losses.
Default in repayment of dues:
22. According to the information and explanations given to us the company is irregularin repayment of banks Loans.
Loans and Advances granted on the basis securities:
23. According to the records of the company and according to the information andexplanations provided to us we are of the opinion that the company has not granted loansand advances on the basis of security by way of pledge of shares debentures and othersecurities.
24. According to the information and explanations provided the company has not givenany guarantee for loans taken by others from banks or financial institutions.
Sources and Application of Funds:
25. Based on our examination of the balance sheet of the company as at March 31 2014on an overall basis and as per the information and explanation given to us we find thatno funds raised on short term basis were utilized for long term purpose.
26. According to the information and explanations given to us the company has not madepreferential allotments of shares to parties listed in the register maintained undersection 301 of the Act.
27. Based upon the audit procedures performed and information and explanation given bythe management we report that no fraud on or by the company has been noticed or reportedduring the course of our audit.
28. The clauses (viii) (xiii) (xiv) (xvi) (xx) of the paragraph 4 & 5 of theorder are not applicable to the company and hence not reported upon.
For M.M DUBEY & Co.
M.M.DUBEY & CO
Membership No. 30453
Date: 4th September 2014